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On Wednesday, Piper Sandler analysts adjusted their outlook on Ollie’s Bargain Outlet Holdings Inc. (NASDAQ: OLLI), reducing the price target to $123 from the previous $124, while maintaining an Overweight rating. The adjustment follows the company’s first-quarter results, which prompted a reevaluation of its financial projections. According to InvestingPro data, the stock currently trades at a P/E ratio of 34x and appears slightly overvalued based on its Fair Value analysis.
The analysts noted that Ollie’s has a favorable market position despite economic uncertainties, particularly concerning tariffs. They highlighted that the company’s sales guidance reflects potential growth, with full-year earnings per share guidance remaining unchanged. The analysts emphasized that Ollie’s has several potential growth drivers, including market share gains from competitors like Big Lots (NYSE:BIG). InvestingPro data shows strong financial health with a current ratio of 2.87x and moderate debt levels, suggesting robust operational stability.
Ollie’s has been benefiting from strong closeout inventory flow from suppliers associated with liquidated retailers such as Big Lots, JoAnn, and Bargain Hunt. This influx of inventory is expected to contribute positively to the company’s performance.
Despite the challenges in the broader economic environment, Piper Sandler analysts believe Ollie’s Bargain Outlet is well-positioned for strong results in 2025 and 2026. The company’s ability to navigate supply chain uncertainties and capitalize on market opportunities remains a key factor in its optimistic outlook. With revenue growth of 8.7% in the last twelve months and an expected 13% growth in FY2026, the company shows promising momentum. Discover more detailed insights and 8 additional ProTips for OLLI with a subscription to InvestingPro, including comprehensive valuation metrics and growth forecasts.
In other recent news, Ollie’s Bargain Outlet reported strong first-quarter results, with same-store sales and earnings per share exceeding expectations, prompting the company to raise its 2025 top-line guidance. Analysts from KeyBanc maintained an Overweight rating with a $135 price target, citing the company’s strategic growth positioning and acquisition of Big Lots locations as key drivers. RBC Capital also reaffirmed an Outperform rating and a $133 price target, noting the importance of upcoming quarters in shaping investor sentiment. Meanwhile, Citi analysts reiterated a Buy rating with a $133 price target, highlighting Ollie’s solid performance despite some one-time expenses affecting earnings per share guidance. Truist Securities raised their price target to $128 from $126, maintaining a Buy rating and emphasizing the company’s growth prospects despite additional costs. Morgan Stanley (NYSE:MS) maintained an Equalweight rating with a $118 price target, discussing potential sales growth scenarios and the impact of integrating Big Lots stores. Across these analyses, the focus remains on Ollie’s ability to navigate market dynamics and leverage its strategic acquisitions for growth.
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