Wells Fargo analyst Edward Kelly maintained a Hold rating on Ollie’s Bargain Outlet Holding (OLLI – Research Report) yesterday and set a price target of $105.00.
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Edward Kelly’s rating is based on a combination of factors that highlight both the strengths and concerns surrounding Ollie’s Bargain Outlet Holdings. The company demonstrated strong execution in a challenging first quarter, with earnings per share exceeding expectations by 6% and a solid comparable sales growth of 2.6%. Despite these positive results, there are ongoing debates about the company’s ability to sustain this momentum, particularly with the high expectations for the second half of the year.
Kelly remains cautious due to concerns about the risk/reward balance. While management is optimistic about the buying environment and the potential benefits from retail bankruptcies, there are uncertainties regarding the availability of key closeout merchandise and the impact of tariffs. Additionally, the stock’s current valuation reflects high expectations, which may not be met if the company fails to exceed its guidance. These factors contribute to Kelly’s decision to maintain a Hold rating, suggesting a need for caution amid the optimistic outlook.
In another report released on June 2, UBS also reiterated a Hold rating on the stock with a $123.00 price target.
Based on the recent corporate insider activity of 87 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of OLLI in relation to earlier this year.