KeyBanc maintains overweight rating on Ollie’s Bargain Outlet stock

Published 04/06/2025, 10:42
KeyBanc maintains overweight rating on Ollie’s Bargain Outlet stock

On Wednesday, KeyBanc analysts reiterated their Overweight rating and maintained a $135 price target for Ollie’s Bargain Outlet (NASDAQ: OLLI). This decision follows the company’s strong first-quarter results, which saw same-store sales and earnings per share surpass expectations. According to InvestingPro data, the stock currently trades at $109.91, with analyst targets ranging from $105 to $137, suggesting potential upside of 17%.

Ollie’s Bargain Outlet reported robust sales performance in the first quarter, prompting the company to raise its 2025 top-line guidance. The earnings forecast, however, remains unchanged. This positive sales trend aligns with data from KeyBanc’s proprietary Key First Look Data. The company maintains strong financial health with a current ratio of 2.87 and operates with moderate debt levels, as shown by InvestingPro’s Financial Health Score of "GOOD."

The analysts highlighted Ollie’s strategic positioning for growth in 2025, citing its acquisition of numerous Big Lots (NYSE:BIG) locations as a key driver. They also noted the benefits Ollie’s is expected to gain from a favorable closeout environment and strong customer retention.

KeyBanc’s continued optimism regarding Ollie’s Bargain Outlet is reflected in their reaffirmed Overweight rating and $135 price target, underscoring their confidence in the company’s growth prospects.

In other recent news, Ollie’s Bargain Outlet reported strong first-quarter results for 2025, with earnings per share (EPS) of $0.75, surpassing analyst forecasts of $0.71. The company’s revenue also exceeded expectations, reaching $576.8 million against a forecast of $565.9 million. This performance was supported by a 13% increase in net sales and a 2.6% rise in comparable store sales, highlighting Ollie’s strategic expansion efforts. RBC Capital, Citi, and Truist Securities have all maintained positive ratings on Ollie’s stock, with RBC and Citi setting a price target of $133, while Truist increased their target to $128. Analysts from these firms noted Ollie’s resilience in the face of market challenges, with strong transaction growth and favorable inventory levels positioning the company well in the retail sector. The closure of Big Lots stores is expected to benefit Ollie’s, with potential for increased market share and deal flow. Despite these positive developments, the stock experienced a pre-market decline, possibly due to broader market conditions. Ollie’s remains committed to its expansion strategy, planning to open 75 new stores this year while maintaining a robust financial outlook.

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