Gap (GPS) (BBBY) (BIG) (LL) (RCII) (WSM) Get New Coverage

Bed Bath & Beyond (BBBY), Gap Inc. (GPS), Big Lots (BIG), Lumber Liquidators (LL), Rent-A-Center (RCII) and Williams-Sonoma (WSM) getting new coverage from analysts.

Collins Stewart initiated coverage on Bed Bath & Beyond (BBBY). They placed a "Buy" rating on the company.

Collins Stewart initiated coverage on Gap Inc. (GPS). They placed a "Sell" rating on the company.

Collins Stewart initiated coverage on Big Lots (BIG). They placed a "Buy" rating on the company.

Collins Stewart initiated coverage on Lumber Liquidators (LL). They placed a "Buy" rating on the company.

Collins Stewart initiated coverage on Rent-A-Center (RCII). They placed a "Buy" rating on the company.

Collins Stewart initiated coverage on Williams-Sonoma (WSM). They placed a "Buy" rating on the company.

Big Lots (BIG) (TWC) (ULTI) (TSU) (AMRI) (ARBA) Ratings, Price Targets

Big Lots, Inc. (BIG), Time Warner Cable (TWC), The Ultimate Software Group, Inc. (ULTI), TIM Participacoes SA (TSU), Albany Molecular Research, Inc. (AMRI) and Ariba, Inc. (ARBA) ratings and price targets.

Piper Jaffray (NYSE:PJC) raised its price target on Big Lots, Inc. (BIG) to $40.00.

Stifel Nicolaus upgraded Time Warner Cable (TWC) from a “Hold” rating to a “Buy” rating. They have a price target of $80.00 on the company.

Morgan Keegan raised its price target on The Ultimate Software Group, Inc. (ULTI) to $75.00. They have an “Outperform” rating on the company.

Standpoint Research initiated coverage on TIM Participacoes SA (TSU). They placed a “Buy” rating and a price target of $31.00 on the company.

Sterne Agee reiterated its “Buy” rating on Albany Molecular Research, Inc. (AMRI). They have a price target of $7.00 on the company.

Roth Capital upgraded shares of Ariba, Inc. (ARBA) to a “Buy” rating.

Cubic (CUB) (RENN) (VAL) (WGL) (ABH) (BIG) Downgraded

Cubic (NYSE: CUB), Renren Inc. (NASDAQ: RENN), The Valspar Co. (NYSE: VAL), WGL Holdings, Inc. (NYSE: WGL), AbitibiBowater (NYSE: ABH) and Big Lots, Inc. (NYSE: BIG) were downgraded by analysts.

Cubic (CUB) was downgraded by JPMorgan Chase & Co. (NYSE:JPM) from an “Overweight” rating to a “Neutral” rating. They have a price target of $49.50 on the company.

Renren Inc. (RENN) was downgraded by Pacific Crest from an “Outperform” rating to a “Sector Perform” rating.

The Valspar Co. (VAL) was downgraded by JPMorgan Chase & Co. (NYSE:JPM) from an “Overweight” rating to a “Neutral” rating. They have a price target of $37.00 on the company.

WGL Holdings, Inc. (WGL) was downgraded by Bank of America (NYSE:BAC) from a “Neutral” rating to an “Underperform” rating.

AbitibiBowater (ABH) was downgraded by RBC Capital from an “Outperform” rating to a “Sector Perform” rating. They have a price target of $18.00 on the company, down from $22.00.

Big Lots, Inc. (BIG) was downgraded by Barclays Capital from an “Overweight” rating to an “Equal Weight” rating.

Big Lots (BIG) (AEGR) (RBN) (CFX) (CKEC) Get New Coverage

Big Lots, Inc. (NYSE: BIG), Aegerion Pharmaceuticals (NASDAQ: AEGR), Robbins & Myers (NYSE: RBN), Colfax Co. (NYSE: CFX) and Carmike Cinemas, Inc. (NASDAQ: CKEC) getting new coverage from analysts.

KeyBanc initiated coverage on Big Lots, Inc. (BIG). They placed a “Hold” rating on the company.

Deutsche Bank (NYSE:DB) initiated coverage on Aegerion Pharmaceuticals (AEGR). They placed a “Buy” rating and a price ttarget of $19.00 on the company.

Stifel Nicolaus initiated coverage on Robbins & Myers (RBN). They placed a “Buy” rating and a price target of $58.00 on the company.

Stifel Nicolaus initiated coverage on Colfax Co. (CFX). They placed a “Hold” rating on the company.

B. Riley initiated coverage on Carmike Cinemas, Inc. (CKEC). They placed a “Buy” rating and a price target of $11.00 on the company.

Big Lots (BIG) (YRCW) (BBW) (BKCC) (CCOI) (CKEC) Upgraded

Big Lots, Inc. (NYSE: BIG), Yrc Worldwide Inc. (NASDAQ: YRCW), Build-A-Bear Workshop, Inc. (NYSE: BBW), BlackRock Kelso (NASDAQ: BKCC), Cogent Communications (NASDAQ: CCOI) and Carmike Cinemas, Inc. (NASDAQ: CKEC) were upgraded by analysts.

Big Lots, Inc. (BIG) was upgraded by Wedbush from a “Neutral” rating to an “Outperform” rating.

Yrc Worldwide Inc. (YRCW) was upgraded by Stifel Nicolaus from a “Sell” rating to a “Hold” rating.

Build-A-Bear Workshop, Inc. (BBW) was upgraded by BMO Capital Markets from a “Market Perform” rating to an “Outperform” rating.

BlackRock Kelso (BKCC) was upgraded by Ladenburg Thalmann from a “Neutral” rating to a “Buy” rating. They have a price target of $9.50 on the company, up from $8.00.

Cogent Communications (CCOI) was upgraded by FBR Capital from an “Underperform” rating to a “Market Perform” rating. They have a price target of $13.00 on the company, up from $10.00.

Carmike Cinemas, Inc. (CKEC) was upgraded by Wedbush from a “Neutral” rating to an “Outperform” rating.

NIKE (NKE) (CCJ) (TDC) (BIG) (BKEP) (MCRS) Ratings Reiterated

Nike, Inc. (NYSE: NKE), Cameco Co. (NYSE: CCJ), Teradata Co. (NYSE: TDC), Big Lots, Inc. (NYSE: BIG), Blueknight Energy Partners L.P. (NASDAQ: BKEP) and Micros Systems Inc (NASDAQ: MCRS) had their ratings reiterated by analysts.

Oppenheimer reiterated an "Outperform" ratng on Teradata Co. (TDC).

Piper Jaffray (NYSE:PJC) reiterated a "Neutral" rating on Big Lots, Inc. (BIG).

Stifel Nicolaus reiterated a "Buy" rating on Nike, Inc. (NKE).

Stifel Nicolaus reiterated a “Buy” rating on Blueknight Energy Partners L.P. (BKEP).

Oppenheimer reiterated an "Outperform" ratng on Micros Systems Inc. (MCRS).

Gabelli reiterated a "Buy" rating on Cameco Co. (CCJ).

Adobe (ADBE) (UTI) (AKS) (TTEC) (BIG) (CVG) Price Targets Changed

Adobe Systems (NASDAQ: ADBE), Universal Technical Institute (NYSE: UTI), AK Steel Holding Co. (NYSE: AKS), TeleTech Holdings, Inc. (NASDAQ: TTEC), Big Lots, Inc. (NYSE: BIG) and Convergys Co. (NYSE: CVG) had price targets changed by analysts.

Adobe Systems (ADBE) had its price target lowered by UBS AG (NYSE:UBS) to $33.00. They have a “Buy” rating on the company.

Universal Technical Institute (NYSE: UTI) had its price target lowered

by Argus from $24.00 to $20.00. They have a “Buy” rating on the company.

AK Steel Holding Co. (AKS) had its price target lowered by Bank of America (NYSE:BAC) to $9.50. They have an “Underperform” rating on the company.

TeleTech Holdings, Inc. (TTEC) had its price target lowered by Oppenheimer from $23.00 to $22.00. They have an “Outperform” rating on the company.

Big Lots, Inc. (BIG) had its price target raised by MKM Partners from $34.00 to $36.00. They have a “Buy” rating on the company.

Convergys Co. (CVG) had its price target lowered by Oppenheimer from $16.00 to $14.00. They have an “Outperform” rating on the company.

ZAGG (ZAGG) (DDD) (MT) (BAC) (BAX) (BIG) Ratings Reiterated

ZAGG (NASDAQ:ZAGG), 3D Systems (NYSE:DDD), Arcelor Mittal (NYSE:MT), Bank of America (NYSE:BAC), Baxter (NYSE:BAX) and Big Lots (NYSE:BIG) had rating on them reiterated by analysts.

Northland Securities reiterated its rating on ZAGG (ZAGG). They have an "Outperform" rating on the company, and raised its price target from $20 to $22.

Barclays Capital reiterated its rating on 3D Systems (DDD). They have an "Equal Weight" rating on the company, and cut its price target from $23 to $19.

Deutsche Bank (NYSE:DB) reiterated its rating on Arcelor Mittal (MT). They have a "Hold" rating on the company, and slashed their price target on them from $38.50 to $24.50.

RBC Capital Markets reiterated its rating on Bank of America (NYSE:BAC). They have an "Outperform" rating on the company, and lowered their price target from $12 to $10.

Ticonderoga reiterated its rating on Baxter (NYSE:BAX). They have a "Buy" rating on the company, and raised their price target from $60 to $62.

ZAGG (ZAGG) (BAC) (YHOO) (BAX) (MDCO) (BIG) Price Targets Changed

ZAGG (NASDAQ: ZAGG), Bank of America (NYSE: BAC), Yahoo! Inc. (NASDAQ: YHOO), Baxter International Inc. (NYSE: BAX), The Medicines Company (NASDAQ: MDCO) and Big Lots, Inc. (NYSE: BIG) price targets adjusted by analysts.

ZAGG (ZAGG) had its price target raised by Northland Securities from $20.00 to $22.00. They have an “Outperform” rating on the company.

Bank of America (BAC) had its price target lowered by RBC Capital from $12.00 to $10.00. They have an “Outperform” rating on the company.

Yahoo! Inc. (YHOO) had its price target lowered by UBS AG (NYSE:UBS) to $14.75. They have a “Neutral” rating on the company.

Baxter International Inc. (BAX) had its price target raised by Ticonderoga from $60.00 to $62.00. They have a “Buy” rating on the company.

The Medicines Company (MDCO) had its price target lowered by Argus from $25.00 to $20.00. They have a “Buy” rating on the company.

Big Lots, Inc. (BIG) had its price target raised by Wedbush from $32.00 to $34.00. They have a “Neutral” rating on the company.

Big Lots (NYSE: BIG), 99 Cents Only Stores (NYSE:NDN) Most Likely LBO Candidates Says Barclays

With the attention of private equity seeming to be focused on the small retail sector lately, Barclays took a look at companies left that could fit the profile of a probable candidate, and feel Big Lots (NYSE:BIG) and 99 Cents Only Stores (NYSE:NDN) are among the few that warrant a real chance of being taken over and going private.

Barclays said, "Private equity interest in retail companies appears to have increased recently, with the just completed LBO of Gymboree (Nasdaq:GYMB) and pending LBOs of J. Crew (NYSE:JCG) and of Jo-Ann Stores (NYSE:JAS). These transactions have focused investors' attention on other retailers that could potentially be taken private. We, too, have reviewed our universe of retailers - specifically the small-box discounters - to determine whether any of them would be suitable LBO candidates. We believe some of the key criteria for a successful LBO include valuation, the outlook for free cash flow generation, ownership structure, and size. Based on our analysis, Big Lots (BIG) is the only one of the five small-box discounters we cover that fits these criteria. It has strong free cash flow, expansion potential, broad ownership, and a low valuation. Also, its enterprise value of $2.4 billion means the required debt and equity financing are likely to be readily available."

"All the stocks we reviewed have strong and growing free cash flow, but Dollar Tree (Nasdaq:DLTR) and Family Dollar (NYSE:FDO) both have valuations that are high enough to limit private equity returns. Dollar General (NYSE:DG) is not only valued at a similar level to DLTR and FDO, but its shares are still majority owned by private equity investors following its 2007 LBO. 99 Cents Only Stores (NDN) is more reasonably valued and an ideal size."

Big Lots closed Thursday at $32.09, gaining $0.41, or 1.29 percent. 99 Cents Only closed at $15.20, losing $0.26, or 1.68 percent.

99 Cents Only (NYSE:NDN), Aeropostale (NYSE:ARO), American Eagle (NYSE:AEO) Named Top LBO Candidates for 2011 by Deutsche (NYSE:DB)

Deutsche Bank (NYSE:DB) released an interesting list of takeover candidates for 2011 in the U.S retail sector, using a metric of those which would probably generate 20 percent premium or more, with their top possibilities being 99 Cents Only (NYSE:NDN), Aeropostale (NYSE:ARO) and American Eagle (NYSE:AEO).

Other big names they consider leading candidates, although not as probable as the three above, were Macy's (NYSE: M), Saks (NYSE:SKS), RadioShack (NYSE:RSH), The Buckle (NYSE:BKE), Best Buy (NYSE:BBY), AnnTaylor (NYSE:ANN), Big Lots (NYSE:BIG) and Gap (NYSE:GPS)

99 Cents Only closed at $15.65 Monday, gaining $0.08, or 0.51 percent. Aeropostale closed at $25.21, up $0.38, or 1.53 percent. American Eagle ended the session at $14.37, down $0.09, or 0.62 percent.

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.

Big Lots (NYSE:BIG) Struggling to Contain Expenses

With sales slower than expected in the fourth quarter and the retailer unable to stop the increase in expenses, Big Lots' (NYSE:BIG) earnings could be crushed during that time.

Barclays (NYSE:BCS) said, "We are forecasting 3Q10 EPS of $0.21, below guidance of $0.25-$0.29 and consensus of $0.24. Third quarter is small so this result is relatively unimportant to earnings for the entire year; 4Q is most important...We do not think BIG was able to slow expense growth in the quarter to match the softer-than-expected sales, therefore, we expect earnings have been hit hard.

"The stock has underperformed due to concerns about slowing sales of discretionary merchandise. At $30.69, BIG trades at just 9.7x our FY11 EPS compared to 14.1x the peer average. We believe the longer-term outlook for BIG remains healthy as the company will be able to drive sales by opening new stores, sourcing better quality goods, utilizing its new frequent shopper program, and upgrading the overall shopping experience."

Barclays maintains an "Overweight" rating on Big Lots, which closed Tuesday at $30.65, dropping $0.04, or 0.13 percent. They have a price target of $42 on them.