11:19 AM EDT, 05/06/2024 (MT Newswires) -- Ollie's Bargain Outlet Holdings (OLLI) is set to benefit from retail store closures and bankruptcies, as well as from consumer trade down as inflation persists, BofA Securities said in a note to clients Monday.

The sourcing environment is expected to remain strong over the fiscal year 2024, driven by ongoing retail store

closures and bankruptcies, Amazon ( AMZN ) third-party seller disruption and other events, according to the note.

"These events create product availability and provide Ollie's merchants an opportunity to strengthen existing vendor relationships and establish new ones, setting the company up to secure more buys in the future," BofA said.

BofA said its pricing study showed that Ollie's prices on a variety of branded items are 45% lower on average compared with Amazon.com ( AMZN ) and Walmart ( WMT ) , according to the note.

"We think that Ollie's is positioned well to benefit from trade-down and expect resilience from its core consumers looking to stretch their dollar," BofA said.

The investment firm reinstated coverage of Ollie's with a buy rating and a $92 price target.

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