KeyBanc analyst Bradley Thomas lowered his price target for Big Lots to $44 from $53 after the company reported a strong 3.4% comp, the best since 2011, but updated guidance raised questions around the margin outlook. A soft start to Q4 is requiring greater markdowns, and Big Lots is also increasing investments in new and remodeled stores, he notes. The analyst is "particularly disappointed" in the magnitude of margin cut for Q4, but is optimistic Q4 can meet new guidance and remain positive on the consumer outlook for 1H, supported by a favorable tax refund backdrop. Thomas reiterates an Overweight rating on the shares.