Ollie’s Bargain Outlet Holding (OLLI – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Simeon Gutman from Morgan Stanley maintained a Hold rating on the stock and has a $118.00 price target.
Simeon Gutman’s rating is based on a combination of factors that present a balanced risk/reward scenario for Ollie’s Bargain Outlet Holding. The company’s valuation at approximately 29 times the forward P/E ratio is slightly above its long-term average, which is justified by its strong market execution and increasing market share in the closeout industry. Despite the uncertain macroeconomic environment, Ollie’s has shown solid performance, with Q4’24 comparable sales growth indicating a positive trend.
However, Gutman also considers potential risks such as execution challenges, inconsistent closeout deal flow, and weak consumer demand for discretionary spending, which could hinder revenue and margin expansion. While there is potential for further positive revisions, particularly with the impact of Big Lots store closures, these risks keep the outlook balanced. Consequently, Gutman has raised the price target to $118 but maintains a Hold rating due to these mixed factors.
According to TipRanks, Gutman is a 3-star analyst with an average return of 1.7% and a 57.72% success rate. Gutman covers the Consumer Cyclical sector, focusing on stocks such as Wayfair, Advance Auto Parts, and Best Buy Co.
In another report released yesterday, Wells Fargo also maintained a Hold rating on the stock with a $105.00 price target.
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