In a report released yesterday, Mark Carden from UBS maintained a Hold rating on Ollie’s Bargain Outlet Holding, with a price target of $141.00.
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Mark Carden’s rating is based on Ollie’s Bargain Outlet Holdings’ recent financial performance, which showed mixed results. The company’s adjusted earnings per share for the third quarter slightly exceeded expectations, but its comparable store sales growth was below both UBS estimates and broader market expectations. This indicates some challenges in meeting investor expectations for top-line growth.
Additionally, while Ollie’s demonstrated a strong gross margin, the operating margin fell short of forecasts, partly due to increased supply chain costs. The company’s updated guidance for fiscal year 2025 suggests modest growth, with slight adjustments to sales and earnings projections. These factors, combined with the company’s inventory increase and store expansion plans, contribute to a cautious outlook, justifying the Hold rating.
In another report released on November 25, Wells Fargo also maintained a Hold rating on the stock with a $130.00 price target.