Ollie's Bargain Outlet's (OLLI) Q3 results were "better than feared" as a liquidation impact wasn't as bad as expected, RBC Capital Markets said in a note Wednesday.

The company's "implied 4Q guidance suggests underlying comp trends remain strong, and 10% unit growth in 2025 seems more realistic," the note said.

RBC analysts said the Q4 outlook, comp trends and expectations for a 10% unit growth next year, "de-risk the story to some degree into likely market share gains in 2025."

RBC also noted that as of Nov. 19, about 205 Big Lots stores located within 10 miles of an Ollie's Bargain Outlet have been announced for closure. The investment firm said it expects the majority of these stores will close by the end of fiscal Q4.

RBC adjusted its Q4 comp sales estimate for Ollie's Bargain Outlet to 3% growth, compared with a forecast for a 2% increase previously, and the Q4 adjusted EPS estimate to $1.22 from $1.17 previously.

The investment firm raised the company's price target to $130 from $120, while keeping its outperform rating on the stock.

OLLI shares were over 2% higher in recent trading.

Price: 113.36, Change: +2.34, Percent Change: +2.11