Loop Capital upgraded Ollie's Bargain Outlet Holdings, Inc. (NASDAQ: OLLI) from Hold to Buy and raised its price target to $135.00 from $130.00, pushing shares up more than 3% intra-day on Monday.

The analyst said the upgrade followed a recent store tour with company leadership and district management, which reinforced confidence in Ollie's ability to deliver positive comparable sales growth in fiscal 2026. Loop Capital identified three key drivers: the ongoing liquidation of Big Lots, which was creating a steady pipeline of attractive store locations and supplier opportunities; the expanding presence of consumables, which was driving more frequent store visits; and a more data-driven, disciplined management approach compared with prior leadership.

The firm also raised its fourth-quarter fiscal 2025 estimates, citing strong positioning for the holiday season as consumers traded down from higher-priced alternatives amid an uncertain U.S. macroeconomic backdrop. The new $135 price target was based on 30.1x projected fiscal 2026 diluted earnings per share, in line with the valuation of comparable retailers.