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On Tuesday, Truist Securities expressed a continued positive outlook on Ollie’s Bargain Outlet (NASDAQ:OLLI), maintaining a Buy rating and a price target of $121.00. According to InvestingPro data, the company maintains a "GOOD" financial health score, with its earnings report due on March 19, 2025. The firm’s analysts are optimistic about the company’s prospects, anticipating a favorable fourth-quarter earnings report. They believe Ollie’s Bargain Outlet could emerge as one of the top-performing stocks in 2025.
The confidence stems from Truist Card data, which suggests that Ollie’s fourth-quarter sales are expected to align with the projected 2.5% comparable sales growth, despite potential challenges from the closure of Big Lots (NYSE:BIG) stores. This optimism is supported by the company’s impressive 12.5% revenue growth and healthy 40.2% gross margin in the last twelve months. Truist Securities highlighted that there has been a slight acceleration in sales over the last two weeks, coinciding with the final liquidations and closures of Big Lots stores.
The closures of Big Lots and other retailers are seen as an opportunity for Ollie’s Bargain Outlet to accelerate its store growth beyond historical rates. Truist Securities predicts an approximate 14% store growth for Ollie’s in 2025, compared to the usual 10%, which could lead to increased sales and market share. Dive deeper into Ollie’s growth potential with InvestingPro’s comprehensive analysis, featuring 8 additional key insights and detailed financial metrics.
The analysts at Truist Securities recommend continuing to invest in Ollie’s Bargain Outlet, with a maintained price target of $121, reflecting their belief in the company’s potential for strong performance and growth in the upcoming year. Based on InvestingPro’s Fair Value analysis, the stock currently appears fairly valued, with analyst targets ranging from $105 to $133.
In other recent news, Ollie’s Bargain Outlet has been the focus of several analyst updates and strategic developments. Piper Sandler reaffirmed its Overweight rating with a $126 price target, emphasizing Ollie’s potential to capitalize on the current economic climate and the liquidation of Big Lots. RBC Capital Markets raised its price target for Ollie’s to $133, maintaining an Outperform rating, following the acquisition of 40 additional store leases from Big Lots. This acquisition is expected to positively impact the company’s sales and earnings per share (EPS). KeyBanc also maintained an Overweight rating with a $125 price target, highlighting Ollie’s expansion plans, which include opening approximately 75 new stores in 2025.
Conversely, Jefferies downgraded Ollie’s stock from Buy to Hold, lowering the price target to $111. The downgrade was due to concerns about Ollie’s inventory growth rate and the challenges of maintaining its current performance levels. Additionally, Ollie’s announced the appointment of Eric van der Valk as the new President & CEO, expanding the board to ten members. This leadership change is part of a succession plan aimed at sustaining the company’s growth trajectory. These recent developments reflect Ollie’s strategic positioning and the varied analyst perspectives on its future performance.
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