Lorraine Hutchinson, an analyst from Bank of America Securities, reiterated the Buy rating on Ollie’s Bargain Outlet Holding (OLLI – Research Report). The associated price target is $130.00.
Lorraine Hutchinson’s rating is based on Ollie’s Bargain Outlet Holdings’ ability to capitalize on macroeconomic disruptions, which enhances its appeal to budget-conscious consumers. The company’s recent earnings report showed a strong performance with increased transactions and basket sizes, despite some seasonal fluctuations. Additionally, Ollie’s plans to open a significant number of new stores in 2025, particularly in locations previously occupied by Big Lots, are expected to drive further growth and market share gains.
Another factor contributing to the Buy rating is the company’s success in attracting a diverse customer base, including high-income individuals trading down and strong customer acquisition in the lower-middle income segment. While there are some pressures on gross margins due to a shift in product mix, management’s reaffirmation of their long-term gross margin targets suggests confidence in maintaining profitability. Overall, the combination of strategic store expansions and a resilient customer base supports the positive outlook for Ollie’s stock.
In another report released today, KeyBanc also reiterated a Buy rating on the stock with a $125.00 price target.