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On Thursday, UBS analyst Mark Carden increased the price target for Ollie’s Bargain Outlet (NASDAQ:OLLI) to $123 from $117, while maintaining a Neutral rating on the stock. According to InvestingPro data, the stock currently trades at a P/E ratio of 33.4x and appears overvalued based on its Fair Value analysis. The company has demonstrated strong momentum with a 41.49% return over the past year. Carden highlighted Ollie’s strong performance in the fourth quarter, noting that the company’s results demonstrate its resilience in a challenging consumer environment. The discount retailer’s same-store sales (SSS) growth of 2.8% exceeded market expectations, despite a shorter holiday season and weaker consumer activity in January, attributed to severe winter weather in the Southeast and broader economic factors.
Ollie’s Bargain Outlet’s profitability metrics aligned with the company’s strategic objectives. The full-year gross margin reached 40.3%, slightly surpassing the targeted 40% algorithm. Additionally, the adjusted EBITDA margin hit 13.8%, coming close to the long-term goal of 14%. These figures reflect the company’s effective management and operational efficiency. InvestingPro data shows the company maintains a healthy financial position with a current ratio of 3.27 and operates with a moderate debt level, as indicated by its debt-to-equity ratio of 0.33.
The analyst’s commentary also pointed out Ollie’s advantageous position in the retail sector. The company benefits from both value-seeking consumers and ongoing disruptions within the retail industry. This dual advantage is seen as a key strength for Ollie’s, as it continues to attract customers looking for discounted products during economic downturns.
Looking forward, Ollie’s is well-prepared to expand its store footprint in the upcoming year. The company’s solid financial health and strategic planning indicate potential for growth despite the external challenges faced in the past months. The new price target set by UBS suggests confidence in Ollie’s ability to capitalize on its market position and to continue its expansion trajectory.
In summary, UBS has recognized Ollie’s Bargain Outlet’s strong fourth-quarter performance and its ability to navigate through softer consumer sentiment and adverse weather conditions. The increased price target reflects the firm’s view of the company’s sustained profitability and promising prospects for store growth. InvestingPro reveals additional insights through its comprehensive analysis, including 10 more ProTips and detailed financial metrics available in the Pro Research Report, helping investors make more informed decisions about OLLI’s growth trajectory.
In other recent news, Ollie’s Bargain Outlet Holdings Inc. reported its fourth-quarter 2025 earnings, meeting expectations with an adjusted earnings per share (EPS) of $1.19, despite a minor revenue miss. The company achieved a 3% year-over-year increase in net sales, totaling $667 million. Ollie’s plans to open 75 new stores in 2025, aiming for a 10% annual unit growth. RBC Capital Markets maintained an Outperform rating with a $133 price target, highlighting Ollie’s potential market share gains and strong business fundamentals. Piper Sandler adjusted its price target to $124 but kept an Overweight rating, citing Ollie’s strong outlook for 2025. Citi also reaffirmed a Buy rating with a $133 price target, noting better-than-expected same-store sales and a promising start to the first quarter. Truist Securities raised its price target to $126, maintaining a Buy rating, and expressed confidence in Ollie’s ability to capture market share amidst competitor store closures. These recent developments reflect a positive trajectory for Ollie’s, supported by strategic growth plans and analyst confidence.
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