Ollie’s Bargain Outlet price target lowered to $78 from $84 at Truist

Truist lowered the firm’s price target on Ollie’s Bargain Outlet to $78 from $84 and keeps a Hold rating on the shares as part of a broader research note previewing 2024 in Hardlines/Broadlines retail. The group could be poised for a solid outperformance for FY24, following slight and rare underperformance in FY23 as consumers continue to spend despite investor concerns over inflation and higher rates, and if the Fed is at or near the end of tightening, investors will lean into consumer-centric growth stocks, the analyst tells investors in a research note. The firm adds however that the company has already recaptured most of the margin it lost over the last few years as supply chain costs have come down, merchandise margins have normalized, and better sales helped drive operating leverage, stating that while the fundamentals for Ollie’s should remain solid, it sees comp growth slowing in FY24 towards the company’s historical algo of 1%-2%.