Cerebro

Select Region

Select Language

Back to Top Stories

Jefferies upgrades Ollie’s Bargain Outlet to Buy, lifts target to $130

The move follows a string of new openings and a strong earnings print, as Ollie’s accelerates its footprint by converting former Big Lots sites.

Mar 27, 2026, 12:15 AM EDT
Why it matters: Ollie’s Bargain Outlet is in a rare growth phase, turning distressed retail real estate into new stores while investors reassess its momentum.
Driving the news:
  • Jefferies Financial Group upgraded Ollie’s Bargain Outlet (NASDAQ:OLLI) from Hold to Buy and raised its price target to $130 from $120, citing improved outlook and execution.
  • The upgrade comes as Ollie’s continues a rapid rollout, with six new stores scheduled to open in March across five states.
State of play:
  • Ollie’s opened 15 new stores this year across 11 states, including locations in Wisconsin, Illinois, Indiana, Minnesota, North Carolina, Missouri, Oklahoma, and Texas.
  • The chain is capitalizing on former Big Lots locations after the retailer’s 2024 bankruptcy, converting shuttered big-box spaces into new discount outlets.
By the numbers:
  • Ollie’s reported Q4 EPS of $1.39, beating consensus by $0.01, with quarterly revenue of $779.26 million versus $783.72 million expected.
  • The company set FY2026 EPS guidance at $4.40–$4.50; analysts forecast $3.29 EPS for the current year.
  • The stock opened at $95.22 on Thursday, with a 52-week range of $88.44–$141.74 and a market cap of $5.80 billion.
What they're saying:
  • Jefferies’ upgrade and target lift signal confidence in Ollie’s expansion pace and margin trajectory, aligning with a broader “Moderate Buy” consensus and a $141.14 average price target.
What to watch:
  • The pace of new store openings and conversions of former Big Lots sites, which could drive same-store sales and operating leverage.
  • Whether Ollie’s can sustain its FY2026 EPS guidance as it scales, and if the stock can reclaim its 2026 high near $141.74.
The bottom line: Jefferies’ upgrade and target raise underscore investor optimism as Ollie’s turns distressed retail real estate into a fast-moving growth engine.