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Investing.com - RBC Capital raised its price target on Ollie’s Bargain Outlet (NASDAQ:OLLI) to $149.00 from $144.00 on Friday, while maintaining an Outperform rating on the stock. According to InvestingPro data, the stock currently appears overvalued, trading at a P/E ratio of 40x and an EV/EBITDA multiple of 26x.
The firm cited Ollie’s "near flawless quarter" which included a 5% comparable sales increase with a strong exit rate and approximately 26% earnings per share growth, leading the company to raise its 2025 guidance across metrics. The company’s strong performance is reflected in its impressive 51.2% return over the past year, with revenue growing at 10.1% and maintaining a healthy gross profit margin of 40.7%.
RBC Capital noted that July comparable sales increased by high single digits and third-quarter comparisons are easier, prompting the firm to raise its third-quarter comparable sales estimate to 7% from 5% previously, with a corresponding EPS estimate increase to $0.79 from $0.77.
For fiscal years 2025 and 2026, RBC now models comparable sales growth of 4.9% and 2.0% respectively, with net sales growth of 18% and 12%, and EPS of $4.00 and $4.66.
The new $149 price target is based on approximately 32 times RBC’s revised 2026 EPS estimate of $4.66, which equates to about 28.3 times the firm’s 2027 EPS estimate of $5.27.
In other recent news, Ollie’s Bargain Outlet reported strong financial results for the second quarter of 2025, surpassing analyst expectations. The company achieved earnings per share of $0.99, exceeding the forecasted $0.92, and reported revenue of $680 million, which was above the anticipated $660.75 million. Truist Securities raised its price target for Ollie’s to $148.00, maintaining a Buy rating, citing the company’s 5% comparable sales growth, enhanced by their "Army Night" promotion. Meanwhile, Jefferies increased its price target to $135.00 from $111.00, highlighting Ollie’s accelerated store growth and strong market share gains. KeyBanc reiterated its Overweight rating with a $145.00 price target, attributing the company’s success to broad-based strength and the successful Ollie’s Army Night promotion. These developments reflect the retailer’s robust market performance and strategic growth initiatives.
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