Loop Capital downgraded Ollie's Bargain Outlet (NASDAQ:OLLI) from Buy to Hold, maintaining its $130 price target, as the firm sees limited upside following the stock’s recent run-up.

The downgrade isn’t tied to any deterioration in the company’s fundamentals. In fact, Loop continues to view Ollie’s as well-positioned for continued outperformance, especially in light of recent retail sector disruptions such as bankruptcies and widespread store closures that have reduced competition.

However, the firm believes the current share price already reflects much of that positive backdrop. With valuation stretched relative to near-term catalysts, Loop is taking a more neutral stance and waiting for a more compelling entry point before becoming bullish again.