Jefferies Upgrades Ollie's Bargain Outlet (OLLI) to Buy

Jefferies analyst Randal Konik upgraded Ollie's Bargain Outlet (NASDAQ: OLLI) from Hold to Buy with a price target of $130.00 (from $120.00).

The analyst comments: "OLLI is the #1 in closeout at a moment when scale matters most. At ~18x P/E, OLLI trades ~7x below FIVE despite similar unit growth and a more needs-based sales mix. In addition, relative to lower-growth, value peers that have already re- rated on durability, OLLI’s valuation looks compelling. We see $130 PT based on 25x F’28E EPS as share gains, deal flow, and unit growth drive a re-rate. Why Has The Stock De-Rated? OLLI shares have de-rated on peak-margin concerns, freight uncertainty, and comp durability, alongside softer Q4 new-store results driven by a deliberate soft- opening strategy. As cohorts mature, this approach smooths ramps and could unlock comp upside, leaving unit growth better positioned ahead."

For an analyst ratings summary and ratings history on Ollie's Bargain Outlet click here. For more ratings news on Ollie's Bargain Outlet click here.

Shares of Ollie's Bargain Outlet closed at $91.24 yesterday.

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