Ollie's Bargain Outlet (OLLI) PT Raised to $70 at BofA Securities; 'uniquely positioned to benefit from trade-down'

BofA Securities analyst Jason Haas raised the price target on Ollie's Bargain Outlet (NASDAQ: OLLI) to $70.00 (from $68.00) while maintaining a Buy rating, saying it is uniquely positioned to benefit from trade-down.

The analyst commented, "OLLI is uniquely positioned to benefit from trade-down over the coming years. OLLI’s prices average 35-40% lower than Walmart’s and Amazon’s. Roughly 65% of revenue comes from closeouts and 22% comes from food and other consumables. Sentiment remains depressed as comps on a four-year basis have trended below the company’s long-term target, but we expect an improvement this year as trade-down picks up. Retail bankruptcies and closures should provide an ample supply of closeouts. OLLI reported a flat comp in 2008 and 8% comp in 2009. Reflecting higher peer multiples, we’re raising our PO to $70 on 25x ’24 P/E (from $68, 24x prior)"

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