On Friday, Loop Capital Markets reaffirmed its confidence in Ollie's Bargain Outlet Holdings Inc (NASDAQ:OLLI) with a steady Buy rating and a $110.00 price target. The firm's analysis follows a recent visit to one of the retailer's locations near Chicago, where the merchandising strategy, particularly the range of national brand products, was noted as impressive.
The Loop Capital analyst highlighted Ollie's Bargain Outlet's ability to offer a diverse array of products, which supports the firm's positive outlook on the company's performance. Despite management's projection of flat comparable store sales for the third fiscal quarter of 2024, the analyst suggests that this forecast might be on the conservative side.
The commentary from Loop Capital comes after Ollie's Bargain Outlet reported a strong second fiscal quarter in 2024, where it exceeded expectations and raised its outlook, contrasting with the less favorable results from its competitors in the deep discount retailing sector. Additionally, the recent Chapter 11 bankruptcy filing by Big Lots (NYSE:BIG) is seen as a potential catalyst for increased investment in Ollie's shares.
Loop Capital's reiterated Buy rating and price target reflect the belief that Ollie's Bargain Outlet is well-positioned in the market and may experience an uptick in investor interest. The firm's analysis suggests that the company's merchandising strengths and recent financial performance set it apart from its peers in the discount retail space.
In other recent news, Ollie's Bargain Outlet Holdings Inc. reported a strong second quarter for fiscal year 2024, with net sales increasing by 12% to $578 million. The company also saw a 5.8% increase in comparable store sales, largely attributed to a rise in transactions and basket size. These developments led Ollie's to raise its sales and earnings guidance for the year 2024.
Loop Capital maintained a Buy rating on Ollie's stock with a target price of $110, acknowledging the potential benefits for Ollie's if competitor Big Lots were to undergo a complete liquidation. Similarly, Piper Sandler maintained an Overweight rating and a price target of $107, identifying the potential bankruptcy of Big Lots as a unique opportunity for Ollie's in terms of sales, closeouts, and new store openings.
KeyBanc Capital Markets also expressed confidence in Ollie's, raising the stock's price target to $105 from $100 while maintaining an Overweight rating. The firm anticipates that Ollie's will continue to capitalize on the favorable closeout market and its ability to retain customers.
InvestingPro Insights
Adding to the positive sentiment from Loop Capital, Ollie's Bargain Outlet Holdings Inc (NASDAQ:OLLI) showcases a robust financial and operational profile according to real-time data from InvestingPro. With a market capitalization of $6 billion, the company's P/E ratio stands at 29.51, reflecting investor confidence in its earnings potential. This is further supported by a PEG ratio of 0.81, indicating that Ollie's is trading at a discount relative to its earnings growth. In terms of performance, the company has enjoyed a revenue growth of 14.15% over the last twelve months as of Q2 2025, demonstrating solid business expansion.
InvestingPro Tips highlight that Ollie's Bargain Outlet has a perfect Piotroski Score of 9, which signals strong financial health. Additionally, 10 analysts have revised their earnings upwards for the upcoming period, suggesting that the company's financial prospects may be even brighter than current estimates show. For readers interested in more in-depth analysis, there are over 10 additional InvestingPro Tips available, offering a comprehensive look at Ollie's financial metrics and market position.
These insights, coupled with the company's impressive gross profit margin of nearly 40%, underline the effectiveness of Ollie's merchandising strategy and operational efficiency. As Loop Capital anticipates, these factors may indeed contribute to a conservative projection of flat comparable store sales and could signal an upcoming period of growth for Ollie's Bargain Outlet.
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