Those who shop at Ollie’s Bargain Outlet (NASDAQ:OLLI) locations know there’s a lot to be had at some very good prices. But now, the stock is a little less of a bargain than it was, up just over 4% in Monday afternoon’s trading. The big reason for the upward shot is a changed rating over at JPMorgan.
JPMorgan analyst Matthew Boss gave Ollie’s some upward momentum by raising the rating on Ollie’s from “underweight” to “neutral.” It seems that Boss believes Ollie’s is getting back to its original sales patterns, thanks in part to a mounting flow in closeout deals. Plus, supply chain improvements are helping the firm get its margin mojo back, and even the overall landscape is looking more conducive to Ollie’s sales.
Indeed, it’s hard to count out Ollie’s overall theme; buying closeout goods is a good way to save money in a slumping economy, and Ollie’s will likely let stressed shoppers engage in retail therapy even with choppy waters ahead.
Meanwhile, analysts overall are split on OLLI stock. With seven Buy ratings, five Holds, and one Sell, Ollie’s stands as a Moderate Buy, according to Wall Street. Furthermore, it offers a lackluster 4.97% upside potential thanks to its average price target of $63.
