Ollie’s Bargain Outlet stock price target raised to $156 by Craig-Hallum

Investing.com - Craig-Hallum raised its price target on Ollie’s Bargain Outlet (NASDAQ:OLLI) to $156.00 from $132.00 on Friday, while maintaining a Buy rating on the stock. Currently trading at $128.91, the stock has delivered an impressive 51.2% return over the past year.

The price target increase follows Ollie’s Q2 performance, which featured same-store sales growth of 5% despite facing tough year-over-year comparisons. The quarter also delivered what Craig-Hallum described as "historic" gross margin results for a second quarter, with the company maintaining a robust 40.74% gross margin. According to InvestingPro, the company’s overall financial health score is "GOOD," with particularly strong profitability metrics.

Craig-Hallum noted that the closeout industry is experiencing rapid growth due to disruption across retail and numerous large-scale retailer bankruptcies and store closures. With fewer competitors in the closeout goods market, Ollie’s has become an increasingly trusted partner for manufacturers, resulting in more quality deals. InvestingPro data shows the company’s revenue growing at 10.14% year-over-year, reaching $2.44 billion in the last twelve months.

The firm highlighted Ollie’s increased digital marketing efforts, which have helped attract younger and higher-income customers. The second quarter marked the highest growth in Ollie’s Army members in company history, according to the research note.

Ollie’s has raised its fiscal year 2025 unit growth forecast again, with Craig-Hallum suggesting the company will maintain outsized unit growth following its success in acquiring leases from failed retailers to create "warm openings" this year.

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. RBC Capital raised its price target for Ollie’s to $149, citing a "near flawless quarter" with a 5% comparable sales increase and approximately 26% earnings per share growth. KeyBanc maintained its Overweight rating and $145 price target, highlighting the retailer’s broad-based strength and successful promotions. Jefferies increased its price target to $135, noting Ollie’s market share gains through accelerated store growth and strong comparable store sales. Truist Securities also raised its price target to $148, acknowledging the company’s better-than-expected sales growth, partly driven by a successful "Army Night" promotion. These developments reflect a positive outlook from various analyst firms regarding Ollie’s recent performance and future prospects.

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