There may be sizable gains in store for Ollie’s Bargain Outlet Holdings in the months ahead, according to Citi. Analyst Steven Zaccone double upgraded shares to buy from sell and more than doubled his price target, hiking it to $133 from $64. That reflects 15.7% upside potential, as of Tuesday’s close. “OLLI is well-positioned to win in the uncertain retail landscape,” he said in a Wednesday note. “The ‘treasure hunt’ shopping experience resonates with the today’s consumers search for value, and OLLI’s agile buying organization is set to capitalize on merchandise disruption from retail closures, supply chain, and tariffs turmoil.” Seeing the closeout business as an attractive area in retail, Zaccone dubbed Ollie’s as the “king of closeouts” given its scaling up of locations across the country. In its latest earnings call with analysts, the company’s chief financial officer, Robert Helm, noted that it has increased the number of its stores by 8% year-over-year, bringing the total number to 546 stores across 31 states at the end of the third quarter. The analyst believes that the company’s recent success through store count, as well as higher sales volume, is “proof the model is scalable” throughout the country. He said that its long-term target of 1,300 stores is “more achievable.” Additionally, while Zaccone expects uncertainty in the retail space to continue into 2025 given the threat of President-elect Donald Trump’s tariff plans, particularly toward China with an additional 10% tariff on goods coming from that country , he anticipates that Ollie’s is well-positioned to capitalize. “OLLI has handled the disruption from Big Lots liquidation sales with a smaller-than expected impact to 2H SSS (~50bps to SSS in both 3Q and 4Q),” he also said. “The Big Lots bankruptcy will likely negatively impact Big Lots vendor relationships and may eliminate Big Lots as a key competitor for OLLI in the closeout industry.” The Street is mostly bullish on the name as well, with 11 out of 15 analysts covering the retailer having a strong buy or buy rating, per LSEG. Meanwhile, three analysts have taken a more neutral stance with a hold rating. OLLI YTD mountain OLLI, year-to-date Zaccone’s call comes as the stock has already significantly outperformed the broader market, advancing more than 51% year to date and more than 27% in the past month.
Citi double upgrades shares of this retailer, sees more than 15% upside from here