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JPMorgan upgraded Ollie’s Bargain Outlet Holdings (NASDAQ:OLLI) to a Neutral rating on Monday after having the retailer set at Underweight.
Analyst Matthew Boss and team said they have greater confidence in a return to OLLI’s historical +1% to +2% same-store sales algorithm and also see a strong closeout deal flow, an improving competitive backdrop relative to FY22, and margin recapture opportunity tied to supply chain improvements. The bear rating on OLLI was also pulled by JPMorgan due to improved visibility to mid-teens EPS growth in FY24-FY25.
The firm’s price target on OLLI is boosted to $66 from $56 and works out to 22X the FY24 EPS estimate.
Shares of OLLI rallied 1.88% in premarket action to $58.62.
In March, the Seeking Alpha Quant Rating on Ollie’s Bargain Outlet Holdings (OLLI) jumped to Strong Buy from Hold. OLLI has the third highest Seeking Alpha Quant Rating in the restaurant sector.
