Loop Capital Lowers Ollie's Target To $80 On 'Far From Perfect' Q3 Results

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Loop Capital analyst Anthony Chukumba lowered his price target for Ollie's Bargain Outlet (OLLI) to $80 from $85 and reiterates a Hold rating on the shares following the company's Q3 results.

The stock is "priced for near perfection" yet the Q3 report and revised fiscal 2018 outlook "were far from perfect," Chukumba tells investors in a post-earnings research note. The analyst says customer transactions declined in Q3 and that he does not find the year-over-year operating margin expansion "compelling." Further, he considers Ollie's implied Q4 comp guidance "underwhelming" given management's continued bullish commentary on its toy opportunity.

Ollie's Bargain Outlet closed Tuesday down 5%, or $4.40, to $86.83 and traded down another 4% to $82.11 post the earnings report. 

 

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