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Wells Fargo says best time to own Ollie's Bargain passed, downgrades stock

Wells Fargo has downgraded Ollie's Bargain Outlet stock from "overweight" to "equal weight" and reduced its price target from $83 to $69, suggesting that the optimal period for investment in the company has passed. Analyst Zachary Fadem cited that while Ollie's has shown strong performance in the past, the current market conditions and the company's growth prospects do not justify its previous high valuation. The downgrade reflects concerns over potential challenges in maintaining the same level of growth and profitability, especially as consumer spending habits might shift with economic changes. Despite this, Fadem acknowledges that Ollie's remains a well-managed company with a unique business model, but the stock's risk-reward balance has shifted, prompting the downgrade.

Read the Full MSN Article at:
[ https://www.msn.com/en-us/money/topstocks/wells-fargo-says-best-time-to-own-ollie-s-bargain-passed-downgrades-stock/ar-AA1vcULU ]