Jefferies analyst Randal Konik upgraded Ollie's Bargain Outlet (NASDAQ: OLLI) from Hold to Buy with a price target of $130.00 (from $120.00).

The analyst comments: "OLLI is the #1 in closeout at a moment when scale matters most. At ~18x P/E, OLLI trades ~7x below FIVE despite similar unit growth and a more needs-based sales mix. In addition, relative to lower-growth, value peers that have already re- rated on durability, OLLI’s valuation looks compelling. We see $130 PT based on 25x F’28E EPS as share gains, deal flow, and unit growth drive a re-rate. Why Has The Stock De-Rated? OLLI shares have de-rated on peak-margin concerns, freight uncertainty, and comp durability, alongside softer Q4 new-store results driven by a deliberate soft- opening strategy. As cohorts mature, this approach smooths ramps and could unlock comp upside, leaving unit growth better positioned ahead."

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Shares of Ollie's Bargain Outlet closed at $91.24 yesterday.