Street Calls of the Week
Investing.com - RBC Capital lowered its price target on Ollie’s Bargain Outlet (NASDAQ:OLLI) to $147.00 from $149.00 while maintaining an Outperform rating, citing broad-based consumer softness in September. The company, currently valued at $7.43 billion, trades at a P/E ratio of 35x and shows strong financial health according to InvestingPro metrics.
The firm revised its comparable sales growth forecast for the third and fourth quarters to 4.5% and 4.0% respectively, down from previous estimates of 7.0% and 5.0%. RBC noted that market expectations have shifted from 6-7% growth to closer to 5%. This adjustment comes despite the company’s impressive 10.14% revenue growth over the last twelve months. InvestingPro data reveals that 7 analysts have recently revised their earnings estimates downward for the upcoming period.
Despite the near-term adjustment, RBC emphasized that Ollie’s gross margin story remains "under-appreciated" and, combined with cycling of one-off events, should support approximately high teens EPS growth in 2026.
The firm’s 2026 assumptions remain largely unchanged, projecting 2% comparable sales growth and 74 new store openings to achieve 13% net sales growth. RBC continues to expect 17% EPS growth, though its 2026 EPS estimate was reduced slightly from $4.66 to $4.60.
Ollie’s Bargain Outlet is scheduled to report third-quarter earnings on December 9, with RBC planning to release a more comprehensive preview closer to the announcement date. The company maintains a healthy financial position with a current ratio of 2.63, indicating strong liquidity. For deeper insights and exclusive analysis, check out the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Ollie’s Bargain Outlet has seen a series of positive developments following its strong quarterly performance. UBS raised its price target for the company to $140, noting a 5% increase in comparable store sales, which marked the retailer’s strongest performance since the second quarter of 2024. Similarly, Craig-Hallum increased its price target to $156, highlighting the company’s impressive same-store sales growth and "historic" gross margin results for the quarter. RBC Capital also raised its price target to $149, emphasizing a "near flawless quarter" with a 5% sales increase and a 26% rise in earnings per share, prompting Ollie’s to boost its 2025 guidance. KeyBanc maintained its Overweight rating and $145 price target, attributing the strong results to broad-based strength and a successful promotion. Jefferies raised its price target to $135, citing the company’s market share gains and a 17% year-over-year increase in store growth. These developments reflect a positive outlook from multiple analyst firms, highlighting Ollie’s solid performance and growth trajectory.
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