Ollie’s Bargain Outlet Holdings: Balanced Risk/Reward Justifies Hold Rating Amid Modest Growth and Economic Uncertainties

Analyst Simeon Gutman from Morgan Stanley maintained a Hold rating on Ollie’s Bargain Outlet Holding (OLLI – Research Report) and keeping the price target at $118.00.

Simeon Gutman has given his Hold rating due to a combination of factors influencing Ollie’s Bargain Outlet Holdings. The company has shown solid performance despite a challenging macroeconomic environment, with Q1’25 results exceeding expectations. The slightly improved guidance for the year reflects this strength, although the growth is expected to remain modest.
However, the potential for significant upside is tempered by several risks. While there is room for improvement in the latter half of the year due to easier comparisons, uncertainties such as dynamic tariffs and a potential decline in consumer discretionary spending could limit profit margins. These factors contribute to a balanced risk/reward scenario, justifying the Hold rating.

In another report released yesterday, Wells Fargo also maintained a Hold rating on the stock with a $105.00 price target.

OLLI’s price has also changed moderately for the past six months – from $97.310 to $109.910, which is a 12.95% increase.