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 on Hardlines/Broadlines Consumer names. Retail could be poised for solid outperformance for FY24 following slight and rare underperformance in FY23 despite investor concerns over inflation and higher interest rates as consumers continue to spend, especially if the Fed is at/near the end of their tightening cycle, the analyst tells investors in a research note. Truist adds however that the stock is up 50% year-to-date, materially outperforming the S&P 500, and while its fundamentals should remain solid, the firm is projecting comp growth to slow in FY24 towards the company’s historical algo of 1%-2%, with more moderate margin expansion.