Truist Securities Reiterates Buy Rating on Ollie's Bargain Outlet (OLLI)
Truist Securities analyst Scot Ciccarelli reiterated a Buy rating and $109.00 price target on Ollie's Bargain Outlet (NASDAQ: OLLI).
The analyst comments "Net/net – Ollie’s posted a solid 3Q, including a flattish comp (down 50bps), slightly better margins and in-line earnings, along with a reiteration of their full year outlook (EPS of $3.22- $3.30). 3Q was projected to be a lower comp quarter, with an expected comp acceleration in 4Q. In our view, the company’s deep-value offering continues to resonate strongly with inflation-weary consumers. Given this strategic positioning, strong unit growth and solid operating performance, we remain buyers of OLLI. More after today’s call. Sales right in-line with our projection/Truist Card data – 3Q sales were $517.4mm vs. our $520.3mmE, right in-line with our forecasts and Truist Card data. Comps were down 50bps, vs. guidance of flat and our +50bpsE. 3Q was expected to be a slower growth quarter due to difficult comparisons, a flyer shift from 3Q into 4Q and the expected disruptions from store closures. We suspect that Big Lot closures and Southeast storms were also headwinds in the qtr. 4Q comps should benefit from the flyer shift and the company reiterated their full year outlook. We believe Ollie’s continues to benefit from their deep-value offering as consumers focus on getting value for their dollars spent."
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Shares of Ollie's Bargain Outlet closed at $98.05 yesterday.