Ollie's Bargain Outlet Earns ‘Double Upgrade’ From Citi: Retail’s Waiting On The Sidelines
By Stocktwits Inc | First Published Dec 19, 2024, 1:51 PM ISTAccording to Citi, Ollie's is "well positioned to win in the uncertain retail landscape"
Shares of closeout store Ollie’s Bargain Outlet ($Olli) reached another 52-week high on Wednesday after the company earned a ‘double upgrade’ from a Citi analyst but retail investors appeared cautious.
Citi analyst Steven Zaccone reportedly upgraded Ollie's Bargain Outlet stock to ‘Buy’ from ‘Sell’ and kept a price target of $133, more than double the $64 it had issued previously, The Fly.com reported.
Latest Videos
According to the firm, Ollie's is "well positioned to win in the uncertain retail landscape" as the "treasure hunt" shopping experience is a hit for today’s value-conscious consumers. The company looks primed to cash in on the merchandise disruptions from retail closures, imminent tariffs uncertainty, and potential supply chain disruptions.
Ollie’s received several price target hikes last week after it reported better-than-expected earnings. Its net income increased 12.8% to $35.9 million, or $0.58 per diluted share, beating analyst estimates.
Zaccone’s view on future EPS upside is based on same-store sales being the primary driver, particularly given its steady 40% gross margin target, according to a Seeking Alpha report.
The analyst also noted Ollie's growth momentum over the last two years, adding that closure of certain smaller competitors should give it an even bigger market share and boost both its brand and offerings.
Retail sentiment on the stock has been ‘neutral’ on the stock over the past week, with some users eying an opportunity for the stock to dip and go back up. Message volumes have remained ‘high’ showing continued attention on the stock.
Ollie’s Bargain Outlet stock is up 52% year-to-date.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<
subscribe to Asianet Newsable WhatsApp channel by clicking here. For more reliable and latest news
subscribe to Asianet Newsable Telegram channel by clicking here.