Big Lots (NYSE:BIG) Undervalued Says Barclays (NYSE:BCS)

Barclays (NYSE:BCS) says they believe Big Lots (NYSE:BIG) is undervalued, although they lowered their EPS estimates in 2010 and 2011, evidently not believing investors will appreciate the value they see.

Barclays said, "In 4Q, the big revenue base makes the model less sensitive to same-store sales, which we do not think investors are appreciating fully. The stock seems undervalued to us...We are lowering our 4Q10 EPS to $1.38 from $1.44 and FY10 to $2.75 from $2.80. BIG's updated 4Q10 guidance range is $1.36 to $1.42. We are lowering our FY11 EPS to $3.09 from $3.15."

They reiterate their "Overweight" rating on the company, which closed Monday at $28.57, losing $0.93, or 3.15 percent. Barclays lowered their price target on Big Lots from $42 to $36.