Ollie's Bargain Outlet (OLLI) is likely to exceed consensus expectations in the second half of 2026, RBC Capital Markets said in a note Tuesday, citing positive takeaways from a recent store tour with management and continued third-party data momentum.
Numerator Insights consumer panel data indicated that recent sales pressure at the company is temporary, RBC said, adding that the "low-income consumer was a notable contributor to recent sales softness, aligning with the spike in energy costs."
RBC raised its Q3 comparable sales growth estimate to 1.5% from about flat previously, compared with a consensus estimate of 0.1% growth. The firm also raised its Q3 adjusted EPS estimate to $0.78 from $0.76, above the consensus estimate of $0.77.
For Q4, the investment firm now expects comparable sales growth of 1.5%, up from its previous estimate of about flat and above the consensus estimate of 0.8%. The firm raised its Q4 adjusted EPS estimate to $1.52 from $1.49, in line with consensus.
RBC has an outperform rating on Ollie's and raised the company's price target to $125 from $124.
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