UBS Raises PT to $140, Maintains Neutral Rating on Ollie's Bargain Outlet.

UBS Raises PT to $140, Maintains Neutral Rating on Ollie's Bargain Outlet.

UBS Group AG has raised its price target for Ollie's Bargain Outlet (OLLI) to $140, maintaining a Neutral rating on the stock. The move comes as the investment bank's analyst team reassesses the retailer's prospects following a strong second quarter performance. The new price target represents a 2.6% increase from the previous target of $137.50.

The update reflects the analyst's view that Ollie's Bargain Outlet will continue to benefit from momentum stemming from store closures and solid closeout availability. The company reported a 5% year-over-year (YoY) comparable sales growth in the second quarter, which was above expectations. Additionally, the firm raised its full-year 2025 comparable sales guidance to 3.3% at the midpoint, indicating a robust outlook for the retailer.

However, UBS analysts have cautioned investors that while the current valuation at peak levels appears "fair," they are not inclined to chase the stock. The firm believes that the benefits from weaker competitive pressures will likely level out in the medium term. This sentiment is reflected in the Neutral rating, which suggests that the stock's performance is expected to be in line with the broader market.

The latest earnings report from Ollie's Bargain Outlet underscores the company's resilience and adaptability in the face of changing market conditions. As the retailer continues to navigate the complexities of the retail landscape, investors should closely monitor the company's ability to sustain its momentum and manage its valuation effectively.

References:
[1] https://www.theglobeandmail.com/investing/markets/stocks/UBS/pressreleases/34442083/goldman-sachs-sticks-to-their-buy-rating-for-ubs-group-ag-ubs/
[2] https://www.tipranks.com/news/the-fly/ollies-bargain-outlet-price-target-raised-to-145-from-118-at-morgan-stanley-thefly