Piper Jaffray Starts Ollie's Bargain Outlet (OLLI) at Neutral

Piper Jaffray initiates coverage on Ollie's Bargain Outlet (NASDAQ: OLLI) with a Neutral rating and a price target of $20.00.

Analyst Peter Keith commented, "We are initiating coverage of Ollie's Bargain Outlet (OLLI) with a Neutral rating and $20 PT based on 25x FY17E EPS of $0.79 following a relatively quick ~25% appreciation in shares since coming public. While we are Neutral on shares due to current valuation, we are very positive on the company and the long-term growth prospects. Ollie's focus on branded close-outs allows for a healthy niche in discount retail, and we support the company's view that it can grow to 950 stores representing a >5x increase from today's base of ~190 stores. Also, the strength of the management team and consistency in results over the last 10+ years provides a high probability that the company's growth strategy will drive a high-teens to 20% EPS CAGR over the long-term."

For an analyst ratings summary and ratings history on Ollie's Bargain Outlet click here. For more ratings news on Ollie's Bargain Outlet click here.

Shares of Ollie's Bargain Outlet closed at $19.94 yesterday.

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