Gold prices hit 4-month high on Fed easing hopes, tariff uncertainty
Investing.com - UBS raised its price target on Ollie’s Bargain Outlet (NASDAQ:OLLI) to $140.00 from $125.00 on Friday, while maintaining a Neutral rating on the discount retailer’s stock. The stock, currently trading at $129.47, is showing signs of being overvalued according to InvestingPro analysis.
The price target increase follows Ollie’s strong quarterly performance, which included a 5.0% comparable store sales growth, marking its strongest comp since the second quarter of 2024. This represented a significant 520 basis point sequential acceleration from the previous quarter. The company’s revenue has grown 10.14% over the last twelve months, with a healthy gross profit margin of 40.74%.
UBS noted that Ollie’s saw positive comparable sales progression throughout the quarter, with July emerging as the strongest month. This performance occurred despite June having unique tailwinds from new promotional events.
The firm indicated that Ollie’s momentum positions the retailer well for the second half of the year, as it benefits from a healthy inventory pipeline and value-seeking consumers.
Despite the price target increase, UBS maintained its Neutral rating on Ollie’s stock, noting that the company faced high investor expectations heading into the earnings report, with conversations suggesting investors had anticipated approximately 6% comparable sales growth. For deeper insights into Ollie’s valuation and growth prospects, including 14 additional exclusive ProTips, check out the comprehensive research report available on InvestingPro.
In other recent news, Ollie’s Bargain Outlet has received several positive updates from various analyst firms following its strong second-quarter performance. The company reported a 5% increase in comparable store sales and a remarkable growth in earnings per share of approximately 26%. Craig-Hallum raised its price target for Ollie’s to $156, highlighting the company’s historic gross margin results for the quarter. RBC Capital also increased its target to $149, noting a "near flawless quarter" and the company’s decision to raise its 2025 guidance. KeyBanc maintained its Overweight rating with a $145 target, attributing Ollie’s success to broad-based strength and effective promotions such as Ollie’s Army Night. Jefferies raised its price target to $135, emphasizing the retailer’s market share gains through accelerated store growth. Truist Securities increased its target to $148, acknowledging that the company’s promotional activities contributed significantly to its sales performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.