- The stock price of Ollie’s Bargain Outlet Holdings Inc (NASDAQ: OLLI) increased by over 2.5% during intraday trading today. This is why.
The stock price of Ollie’s Bargain Outlet Holdings Inc (NASDAQ: OLLI) increased by over 2.5% during intraday trading today. Investors are responding positively to a bullish research report.
RBC Capital analyst Steven Shemesh upgraded Ollie’s Bargain Outlet from a “Sector Perform” rating to an “Outperform” rating while increasing the price target from $47 to $65.
“OLLI posted another tough quarter, but between the easing of supply chain pressures and contracted freight rates we are becoming increasingly confident that OLLI fundamentals will sequentially improve in the back half and beyond,” wrote Shemesh in a research note. “We are adjusting our FY’22/FY’23 comp estimates to -1.3%/+1.5% (from +0.5%/+1.5%) and our EPS estimates to $1.93/$2.85 (from $2.21/$3.03). As a reminder OLLI is a unit growth story that has historically been rewarded for consistent delivery. While our FY’23 numbers have come down slightly, we believe consistently better fundamentals will result in meaningful multiple expansion. We are upgrading OLLI to Outperform and raising our PT to $65 based on 23x our revised FY’23 EPS estimate of $2.85.”
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