Ollie’s Bargain Outlet price target lowered to $65 from $70 at Craig-Hallum

Craig-Hallum analyst Jeremy Hamblin lowered the firm’s price target on Ollie’s Bargain Outlet to $65 from $70 and keeps a Buy rating on the shares. The analyst notes Ollie’s delivered mixed Q3 results with downside on sales largely expected offset by a solid gross margin beat. However, Q4 sales and gross margin guidance were disappointing and the company took a step back from the progress made in Q3, Hamblin adds. The analyst believes the street anticipated weaker sales but downside on the stock was driven by margin guide for Q4 coupled with some uncertainty on 2023 margins. While "disappointed," he nonetheless views the downward move in the stock as an overreaction and representative of frustration with management rather than fundamentals.