Gordon Haskett upgrades Ollie’s to Buy amid scarcity of retail ‘winners’

As previously reported, Gordon Haskett analyst Eric Cohen upgraded Ollie’s Bargain Outlet (OLLI) to Buy from Accumulate with a price target of $107, up from $105. The firm cites “a variety of reasons, including additional store closings, notably Big Lots (BIG), that it sees providing incremental market share and real estate opportunities; consumers’ increasing focus on value, as evidenced by recent reports from Walmart (WMT), TJX (TJX) and Ross Stores (ROST); and a favorable closeout environment that it believes should pave the way for strong second half comps. While noting the stock’s valuation has expanded, given the scarcity of retail “winners” in the current uncertain backdrop, the firm argues that a premium valuation is “justified.”