Truist Securities maintains buy rating on Ollie’s Bargain Outlet stock

Published 02/06/2025, 14:22
Truist Securities maintains buy rating on Ollie’s Bargain Outlet stock

On Monday, Truist Securities analysts reaffirmed a Buy rating for Ollie’s Bargain Outlet (NASDAQ: OLLI) stock, with a price target of $126.00. Currently trading at $111.45, the stock has shown strong momentum with a 35% return over the past year. According to InvestingPro data, analyst targets range from $105 to $137, with the company maintaining a "GOOD" financial health rating. The analysts noted that while sales began the first quarter on a softer note, there was a notable acceleration in late March and April, followed by a slight easing towards the end of the period.

According to Truist’s card data, sales for the first quarter are expected to align with the forecast of a 2.0% comparable sales increase and total sales of $561 million. For the second quarter, initial data suggests sales are trailing behind both the first quarter’s exit rate and projections by analysts and the Street.

The analysts highlighted that the company faced tougher comparisons in May, with a 10% increase in the previous year, compared to just 1% in April. These comparisons are expected to become even more challenging in June, with a 13% increase from the previous year, before easing significantly in July with a 10% decrease.

Truist Securities expressed confidence in Ollie’s Bargain Outlet’s outlook, suggesting that investors consider buying on any potential pullback in the stock. The firm anticipates a potential re-acceleration in sales growth in July as the comparison base becomes more favorable. Based on InvestingPro’s Fair Value analysis, the stock appears slightly overvalued at current levels. Subscribers can access 8 additional ProTips and a comprehensive analysis in the Pro Research Report, which provides deeper insights into OLLI’s valuation metrics and growth prospects.

In other recent news, Ollie’s Bargain Outlet Holdings Inc. has been the focus of several analyst updates following its financial performance and strategic positioning. RBC Capital Markets maintained its Outperform rating with a $133 price target, citing a projected comparable sales increase and the positive impact of Big Lots (NYSE:BIG) store closures. RBC anticipates Ollie’s adjusted earnings per share (EPS) to reach $0.74 for the upcoming quarter, surpassing the consensus estimate. KeyBanc Capital Markets raised its price target for Ollie’s to $135, maintaining an Overweight rating, and highlighted potential upside in comparable store sales based on recent market activities.

UBS also adjusted its price target to $123, recognizing Ollie’s strong fourth-quarter performance, which exceeded market expectations with a 2.8% same-store sales growth. Piper Sandler, while reducing its price target slightly to $124, maintained an Overweight rating, emphasizing the benefits Ollie’s could gain from Big Lots’ liquidation. The analysts at Piper Sandler noted Ollie’s strong 2025 outlook, driven by its closeout business model and potential market share gains.

These developments reflect a generally optimistic outlook from analysts, with Ollie’s strategic positioning and financial performance being key factors in their assessments. The company’s ability to navigate economic challenges and capitalize on market dynamics has been a focal point for these firms. Investors are closely monitoring whether Ollie’s can meet or exceed these expectations in the coming quarters.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.