RBC Capital Markets raised its price target for Ollie’s Bargain Outlet to $124 from $121, citing an improved outlook for the discount retailer. The new target is based on roughly 25 times RBC’s 2027 adjusted earnings-per-share estimate of $4.95.
The stock last traded at $71.06, down 28.67% over the previous six months. UBS maintained its price target at $85, while keeping a Neutral rating on the shares.
RBC also lifted its adjusted diluted EPS projections for Ollie’s, estimating $4.58 for 2026 and $4.95 for 2027, up from prior forecasts of $4.34 and $4.86, respectively. Comparable-store sales are now projected at -0.1% for 2026 and +2.0% for 2027, versus earlier estimates of +0.1% and +2.0%.
Ollie’s reported adjusted EPS of $1.42 for the second quarter, exceeding Wall Street’s $1.14 estimate and rising 43% year-over-year. Revenue totaled $741.3 million, below the $756.4 million forecast. Comparable-store sales fell 1.8%, an improvement over the expected decline of 2% to 3%.
RBC noted that the retailer’s gross margin, excluding tariff refunds, remained robust, supported by tariff refunds and strategic pricing actions that enabled reinvestment in pricing strategies. The firm added that Labor Day falling a week later and easier year-ago comparisons helped performance, with momentum expected to extend into September. Management has also accelerated share buybacks.
