Ollie's Bargain Outlet price target lowered to $80 from $112 at Truist
Truist lowered the firm's price target on Ollie's Bargain Outlet to $80 from $112 and keeps a Buy rating on the shares. Based on the firm's Truist Card Data, even with nearly a month left in the quarter, the firm is lowering its Q2 comp forecast to down 3% from up 1%, the analyst tells investors in a research note. The company has likely been more pressured than other retailers from the spike in gas prices, since their real estate model leans towards "cheap rent"/destination locations, and they don't have an e-com channel to help subsidize store visits, the firm added. Truist notes however that the stock seems oversold given the company's double-digit unit and earnings growth as well as its strong balance sheet and accelerated buyback program.
Truist lowered the firm's price target on Ollie's Bargain Outlet to $80 from $112 and keeps a Buy rating on the shares.
Based on the firm's Truist Card Data, even with nearly a month left in the quarter, the firm is lowering its Q2 comp forecast to down 3% from up 1%, the analyst tells investors in a research note.
The company has likely been more pressured than other retailers from the spike in gas prices, since their real estate model leans towards "cheap rent"/destination locations, and they don't have an e-com channel to help subsidize store visits, the firm added.
Truist notes however that the stock seems oversold given the company's double-digit unit and earnings growth as well as its strong balance sheet and accelerated buyback program.