Ollie’s Bargain Outlet (OLLI) Stock: Why The Price Jumped Up

Apr 4th, 2022 13:45 EST
  • The stock price of Ollie’s Bargain Outlet Holdings Inc (NASDAQ: OLLI) increased by over 13% during intraday trading today. This is why.

The stock price of Ollie’s Bargain Outlet Holdings Inc (NASDAQ: OLLI) increased by over 13% during intraday trading today. Investors are responding positively to a bullish research report.

Wells Fargo analyst Edward Kelly upgraded Ollie’s Bargain from an Equal-Weight rating to an Overweight rating. And Kelly increased the price target from $45 to $65.

“The story has admittedly been ugly, but we expect momentum to turn positive in the coming quarters. The close-out buying environment, which we believe has been the company’s biggest sales issue, looks poised to improve. Supply chain missteps appear to have been corrected and should provide additional upside,” wrote Kelly in a research note. “We also see Ollie’s as uniquely positioned to benefit from growing consumer headwinds, especially if traditional retail has overcorrected on inventory. The stock looks to us like a coiled spring given the potential for $3+ in 2023 earnings and its growth profile. Concerns around 2022 guidance and the model overall remain, but we believe the reward well outweighs the downside risk.”

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.

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