Tuesday, Truist Securities updated its outlook on Ollie's Bargain Outlet (NASDAQ: OLLI), raising the price target to $121 from the previous $109, while keeping a Buy rating on the stock. The retailer, which boasts a perfect Piotroski Score of 9 according to InvestingPro data, has reported robust third-quarter results, standing firm against numerous challenges, including changes in promotional schedules, competitor store closures, and the impact of hurricanes.
The company managed to maintain its guidance for the full year. A notable recovery in gross margins to above 40% was seen, a move that is expected to ease the concerns investors had after the second quarter's performance. With a strong current ratio of 3.01, indicating robust liquidity, and trading near its 52-week high, the company appears well-positioned to capitalize on long-term opportunities for sales and market share gains as it continues to aggressively acquire locations from bankrupt competitors.
The retailer's unit growth remains vigorous, with revenue growing 14.15% over the last twelve months, and its operational performance is described as solid. The analyst pointed out that Ollie's deep value proposition is becoming increasingly attractive to consumers who are feeling the pressure from persistent inflation. With these factors in mind, Truist Securities reaffirms its positive stance on Ollie's Bargain Outlet shares, emphasizing the revised price target of $121. Discover 12 additional exclusive insights and detailed financial analysis for OLLI on InvestingPro.
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