RBC Capital raised its price target on Ollie’s Bargain Outlet to $124 from $121, maintaining an Outperform rating as the discount retailer reported second-quarter results that exceeded expectations.
The stock was trading at $71.06, down 28.67% over the past six months, though a real-time data feed in the report showed a price of $74.50, down 1.22% on the day. UBS kept its price target unchanged at $85 with a Neutral rating.
Ollie’s reported adjusted earnings per share of $1.42, beating Wall Street’s forecast of $1.14 and rising 43% year-over-year. Revenue reached $741.3 million, slightly below the anticipated $756.4 million. Comparable store sales fell 1.8%, an improvement over the expected decline of 2% to 3%, with momentum accelerating through the quarter and into the current period following adjustments for flyer timing and Labor Day shifts.
Gross margins strengthened, supported by tariff refunds and strategic pricing, while management continued aggressive share buybacks. RBC’s new target implies a valuation of roughly 25 times its 2027 adjusted EPS estimate of $4.95, up from the prior $4.86 estimate.
For 2026, comparable sales are now modeled at -0.1%, revised from +0.1%, while 2027 is unchanged at +2.0%. Adjusted EPS projections for 2026 rose to $4.58 from $4.34, and for 2027 to $4.95 from $4.86. RBC’s target suggests further upside from current levels, though UBS’s $85 target with a Neutral rating indicates a more conservative view.
