UBS maintains neutral rating and $123 target for Ollie’s stock

On Monday, UBS analysts reiterated their Neutral rating for Ollie’s Bargain Outlet stock (NASDAQ:OLLI), maintaining a price target of $123.00. The analysts highlighted the resilience of Ollie’s closeout model in the first quarter, with consumers showing a preference for value retailers. According to InvestingPro data, OLLI stock has delivered a strong 35% return over the past year, though it currently trades at a premium valuation with a P/E ratio of 34x.

UBS analysts noted that Ollie’s flexible purchasing model and diverse product assortment could demonstrate strength in the first quarter, despite some market volatility. The focus remains on how Ollie’s performs amid the closures of Big Lots (NYSE:BIG) and its accelerated store opening plans, which aim for a 13% year-over-year increase. The company’s financial health appears solid, with InvestingPro metrics showing a healthy current ratio of 3.27 and revenue growth of 8% in the last twelve months.

The analysts emphasized the importance of these developments as Ollie’s continues to navigate the evolving retail landscape. The company’s ability to adapt to changing consumer preferences and market conditions will be closely watched.

UBS’s analysis reflects a cautious outlook, as they continue to monitor Ollie’s performance in the context of broader retail trends and competitive pressures.

In other recent news, Ollie’s Bargain Outlet has garnered attention from several financial analysts with updates on its performance and future outlook. RBC Capital Markets maintained an Outperform rating for Ollie’s, with a price target of $133, citing expected benefits from the closure of competing Big Lots stores and projecting a comparable sales growth of 3.5% in 2025. UBS also raised its price target for Ollie’s to $123, emphasizing the company’s strong fourth-quarter results and resilience despite challenging conditions, with same-store sales growth of 2.8%. Meanwhile, Truist Securities reaffirmed a Buy rating, highlighting a potential re-acceleration in sales growth in July, despite a softer start to the first quarter. KeyBanc Capital Markets increased its price target to $135, maintaining an Overweight rating and suggesting that Ollie’s may exceed initial sales expectations. These developments reflect a generally positive sentiment among analysts, who have noted Ollie’s strategic positioning and potential for growth amidst current market dynamics.

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