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Shares of Ollie's Bargain Outlet (OLLI) - Get Free Report rose Tuesday after the company was upgraded to outperform from sector perform at RBC Capital Markets.

RBC analyst Scot Ciccarelli also increased his price target to $67 from $65, saying the valuation "seems compelling" after the stock sold off 40% from recent highs due to "poor" second-quarter results and lowered expectations for the second half of the year.

"We believe many of the recent business pressures were self-induced and these headwinds should ease by 1Q/2Q20," Ciccarelli said in a note Tuesday. "While our call may be early, we think longer-term investors can 'get paid' for being early, due to the company's earnings compounding potential.

The company has 11 buys, four holds and no sell recommendations with an average price target of $72, according to Bloomberg. 

The stock was up 3% to $60.45 on Tuesday. It's down about 41% from its high of $103.03 in May.