Apr. 2 at 6:36 PM
$OLLI Jefferies upgraded
$OLLI to Buy from Hold and raised its tp to
$130,~42% upside.
- OLLI has a unique moat: buying excess inventory at scale, which is increasingly valuable as retail stress creates more closeout opportunities.
- OLLI trades at a lower valuation than Five Below, despite similar growth and a larger national footprint.
- The company operates ~645 stores, far ahead of its next competitor (159 stores), and sees a path to 1,300 locations.
- Recent concerns (peak margins, freight costs, softer Q4 openings) are viewed as misinterpreted; Jefferies says the deliberate soft‑opening strategy improves long‑term comp performance.
- Closeout retail has shifted from a tactical to a structural channel as big‑box retailers rationalize inventory, reducing vendor pricing power.
