Piper Jaffray maintained a Neutral rating and $20.00 price target on Ollie's Bargain Outlet (NASDAQ: OLLI) despite healthy 3Q results. OLLI comped +3.2% in Q3, much better than consensus of +0.7%, with the comp being driven by both traffic and average basket. EPS was reported at $0.11, 8c above consensus. On the call OLLI mentioned that the majority of their 21 merchandise categories were positive with most of those up at least +MSD for the second straight quarter. Piper Jaffray keeps its Neutral rating for now due to valuation and as the company laps its most difficult quarterly compare in Q4.

Analyst Peter Keith, commented, "We are maintaining our Neutral rating and $20 price target on OLLI after solid Q3 results showed upside to both sales and EPS, and full year guidance was raised slightly. The Q3 comp of +3.2% (vs. consensus of 0.7%) was driven by both transactions and ticket, and management commented on broad category strength across the store. Closeout opportunities appear to remain robust as the company's IPO in 2015 has raised its profile in the industry. The outlook for Q4 was maintained but the company appears pleased with sales QTD. New stores continue to perform well and the company is on track for 15% unit growth. We continue to like the long-term growth opportunity and consistent results, but are maintaining our Neutral rating for now due to valuation and as the company laps its most difficult quarterly compare in Q4."

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Shares of Ollie's Bargain Outlet closed at $16.51 yesterday.