Ollie's Bargain Outlet Holdings Inc’s (NASDAQ:OLLI) momentum could turn positive in the coming quarters, according to Wells Fargo.
The Ollie's Bargain Outlet Analyst: Edward Kelly upgraded the rating for Ollie's Bargain Outlet from Equal Weight to Overweight, while raising the price target from $45 to $65.
The Ollie's Bargain Outlet Thesis: The biggest issue for the company over the past year was a weak close-out buying environment due to supply chain constraints and stimulus-fueled consumer demand, Kelly said in the upgrade note.
The close-out buying environment now looks “poised to improve,” the analyst mentioned. “Supply chain missteps appear to have been corrected and should provide additional upside,” he added.
“We also see OLLI as uniquely positioned to benefit from growing consumer headwinds, especially if traditional retail has overcorrected on inventory,” Kelly wrote. “The stock looks to us like a coiled spring given the potential for $3+ in 2023 earnings and its growth profile,” he further said.
OLLI Price Action: Shares of Ollie's Bargain Outlet Holdings were trading up by 8.52% on Monday at $46.50, the stock is down more than 11% year to date.
Photo: Courtesy of ollies.us
