Ollie's Bargain Outlet (OLLI) is "firing on all cylinders," poised for a strong beat and raise as it reports its fiscal Q2 results, RBC Capital Markets said in a Monday note.

"We expect the company to deliver on a very high bar, raise 2025 guidance and convey confidence in ~mid-teens EPS growth in 2026," said the investment firm.

Transaction data indicates a "strong" June and momentum extended through July, RBC said. The investment firm raised its fiscal Q2 comparable sales growth estimate to 3.5%, from 1.5% previously, and said it expects Ollie's Bargain Outlet's closure of Big Lots stores to contribute to this momentum.

The company is also benefitting from low income consumer pressure, tariff-related supply chain disruption, and retailer bankruptcies, potentially driving about a 20% increase in fiscal 2025 earnings per share, RBC said.

Ollie's Bargain Outlet is set to release its fiscal Q2 results on Aug. 28.

RBC raised its price target on Ollie's Bargain Outlet stock to $144 from $133, while maintaining its outperform rating.

Price: 133.12, Change: -0.40, Percent Change: -0.30