Dillard's, The Gap Get Ratings Cut; Coverage Started on Ollie's

In Monday's Analysts' Actions, retailers are getting a lot of attention. Dillard's (DDS) and The Gap (GPS) saw their ratings cut, while analysts initiated coverage on Ollie's Bargain Outlet (OLLI) with a bullish outlook. JPMorgan downgraded Dillard's to UNDERWEIGHT from NEUTRAL and lowered its price target to $89 from $114. Same-store-sales have been declining since 2010 and the department store is experiencing negative foot traffic, according to the firm. One near-term headwind is intense mall-based competitions, analysts said. JPMorgan also downgraded The Gap to UNDERWEIGHT from NEUTRAL Monday morning. Analysts dropped their price target to $29 from $40. Six-year trailing comp average from 2009 to 2014 is flat and competition is growing, they noted. 'We see organic market share opportunity as limited from here,' JPMorgan stated. Finally, KeyBanc Capital Markets started coverage on Ollie's Bargain Outlet with an OVERWEIGHT rating and a $24 price target. Shares are currently trading at around $19. The firm is bullish because of Ollie's compelling unit growth story. So far, the company has shown consistency in sales, margins, and new store economics. Looking ahead, analysts expect the company to generate high-teens to 20% annual earnings growth. TheStreet's U-Jin Lee reports from New York.