Ollie's Bargain Outlet upgraded to Overweight with $150 price target.

Ollie's Bargain Outlet upgraded to Overweight with $150 price target.

Piper Sandler has raised its price target on Ollie's Bargain Outlet (OLLI) to $150 from $123, maintaining an Overweight rating on the shares [1]. The upgrade reflects the analyst's view that the discount retailer's fundamentals have improved, driven by cleaner stores and trade-down benefits. However, the analyst notes that the company may need to raise its full-year outlook to support the current share price.

Ollie's Bargain Outlet reported strong Q2 2025 earnings, with net sales of $578 million, a 12% year-over-year increase driven by 5.8% same-store growth and new store additions [2]. The company's strategic focus on inelastic categories and its 14.5 million loyalty members accounted for 80% of sales. The company's balance sheet remains robust, with $353 million in cash and no debt, highlighting its financial strength.

The upgrade comes as Ollie's is poised to benefit from the current economic environment, with low-income shoppers under pressure and retailers facing tariff-related supply chain disruptions [3]. RBC Capital Markets expects Ollie's to raise its full-year 2025 guidance and indicate mid-teens EPS growth in 2026.

Benjamin Edwards Inc. also recently acquired a new stake in Ollie's Bargain Outlet, purchasing 2,287 shares valued at approximately $266,000 [4]. The company reported earnings of $0.75 EPS for the last quarter, surpassing analyst expectations.

In summary, Piper Sandler's upgrade reflects the positive fundamentals of Ollie's Bargain Outlet, driven by its strong Q2 2025 earnings and the current economic environment. The company's strategic focus on inelastic categories and its robust balance sheet position it well to capitalize on market trends. However, the analyst's note that the company may need to raise its full-year outlook to support the current share price.

References:
[1] https://www.tipranks.com/news/the-fly/ollies-bargain-outlet-price-target-raised-to-150-from-123-at-piper-sandler-thefly
[2] https://www.ainvest.com/news/ollie-bargain-outlet-q2-earnings-report-retail-sector-implications-leveraging-retail-resilience-economic-uncertainty-2508/
[3] https://finance.yahoo.com/news/ollie-apos-bargain-outlet-poised-150037566.html
[4] https://www.marketbeat.com/instant-alerts/filing-benjamin-edwards-inc-acquires-new-stake-in-ollies-bargain-outlet-holdings-inc-nasdaqolli-2025-08-17/