Ollie’s Bargain Outlet price target lowered to $60 from $70 at Wells Fargo

Wells Fargo analyst Edward Kelly lowered the firm’s price target on Ollie’s Bargain Outlet to $60 from $70 and keeps an Overweight rating on the shares. The positive Ollie’s Bargain Outlet’s close-out thesis took a serious hit with the Q3 update, as its clear that the company’s improved product offering just isn’t making much of a difference in top-line momentum, the analyst notes. There is plenty of evidence that Ollie’s Bargain Outlet has much better product, but consumers just don’t seem to be responding. The most likely answer to him is that Ollie’s Bargain Outlet’s is struggling to stand out and capitalize on trade-down in a highly promotional retail backdrop. This implies trends should eventually accelerate in 2023 as retail inventories normalize and Ollie’s Bargain Outlet’s offering continues to improve, Kelly adds.