On Thursday, Truist Securities adjusted its price target for Ollie's Bargain Outlet (NASDAQ: OLLI), increasing it to $102.00 from the previous $86.00 while maintaining a Buy rating on the stock. This decision follows Ollie's Bargain Outlet's recent report of solid first-quarter results, which included a comparable store sales growth of 3% and earnings that surpassed expectations.
The company's robust deal flow and its ability to attract a growing number of consumers, including those with higher incomes seeking value, were highlighted as key drivers of growth. Truist Securities pointed out that consumer trends are shifting towards value-oriented purchases, which bodes well for Ollie's.
The firm expressed confidence in the company's trajectory, noting that Ollie's is returning to its stable historical growth pattern. This consistency in performance, according to Truist Securities, is likely to continue boosting the company's earnings per share (EPS) and stock valuation multiple.
The analyst from Truist Securities underscored the strong execution and momentum of Ollie's Bargain Outlet as factors reinforcing their conviction in the company's positive outlook. With the revised price target of $102, the firm signals its belief in the potential for Ollie's to achieve incremental margin upside.
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