Wells Fargo Adds Ollie’s Bargain Outlet to Tactical List With $130 Target

Ollie's Bargain Outlet (NASDAQ:OLLI) has been caught successful a meaningful selloff, but Wells Fargo expert Edward Kelly sees the weakness arsenic an opportunity. Kelly added Ollie's to the firm's Q2 Tactical Ideas List with an Overweight standing and a $130 terms target, arguing the banal is mispriced comparative to its maturation trajectory.

So acold this year, the banal is down 17.53%, and implicit the past year, shares of OLLI person mislaid 19.85%.

Wells Fargo believes the post-Q3 net pullback creates an charismatic introduction point, noting that choppy information is an overhang but "a mates of weeks is not a trend." Management's code remains positive, and Wells expects a coagulated Q1 aided by "One Big Beautiful Bill" taxation refunds. The halfway thesis: the banal is excessively inexpensive for the maturation outlook.

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The steadfast cited beardown Q4 comparable store income growth, effectual outgo management, and steadfast margins arsenic grounds that Ollie's is positioned for continued double-digit net maturation successful 2026.

Ollie's is an off-price closeout retailer that sells name-brand merchandise astatine heavy discounts. The exemplary benefits structurally erstwhile retail consolidation accelerates woody flow. The institution ended FY2025 with 645 stores crossed 34 states aft opening a grounds 86 locations during the year. Full-year nett income reached $2.65 billion, up 17% twelvemonth implicit year, with nett income of $240.6 million.