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Investing.com - Jefferies has raised its price target on Ollie’s Bargain Outlet (NASDAQ:OLLI) to $135.00 from $111.00 while maintaining a Hold rating on the stock. The company currently trades at a P/E ratio of 40x and an EV/EBITDA multiple of 27.6x, suggesting rich valuation levels. According to InvestingPro analysis, the stock appears to be trading above its Fair Value.
The closeout retailer continues to gain market share through accelerated store growth, which increased 17% year-over-year, alongside strong comparable store sales growth of 5%, according to Jefferies. This expansion has contributed to impressive revenue growth of 8.7% over the last twelve months, with total revenue reaching $2.34 billion.
Deal flow for the company remains robust, supported by ongoing retail disruption and uncertainty surrounding tariffs, factors that benefit Ollie’s closeout business model.
The company has raised its fiscal year guidance across all metrics, with comparable store sales now projected to exceed Ollie’s long-term algorithm targets.
Despite acknowledging Ollie’s strong execution and market positioning, Jefferies maintains its Hold rating, citing the stock’s high valuation as a limiting factor for further upside potential.
In other recent news, Ollie’s Bargain Outlet reported strong financial results for the second quarter of 2025, surpassing analyst expectations. The company posted an earnings per share of $0.99, exceeding the forecast of $0.92, and reported revenue of $680 million, above the anticipated $660.75 million. Truist Securities responded to these results by raising its price target for Ollie’s Bargain Outlet to $148, while maintaining a Buy rating on the shares. The firm noted that Ollie’s second-quarter comparable sales growth of 5% exceeded its own estimate of 3%. The company’s "Army Night" promotion was highlighted as a contributing factor to this performance, adding approximately 100 basis points to the sales growth. These developments underscore Ollie’s positive momentum in the market.
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