As Ollie's Bargain Outlet (NASDAQ:OLLI) continues to show resilience throughout the COVID-19 pandemic, yet another analyst agrees the discount retailer still has tremendous upside potential.

Stephens analyst Rick Nelson nearly doubled his price target for Ollie's stock, raising it to $104 per share from $54 per share, joining other Wall Street firms that see more good times ahead for the deep discounter.

Shopping cart filled with coins

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Betting big on deep discounts

Back in March, Nelson lowered his price target on the stock from $75 based more on the soft Christmas season it had recently reported rather than any doomsday scenario for the retail industry. Indeed, he noted the long-term investment thesis on Ollie's remained intact, and that the discounter was likely to benefit from any shakeout that occurred among retailers.

Two months later, it seems Nelson believes those variables will now come into play. The off-price sector in general is being upgraded because of the potential to profit handsomely from the turmoil the pandemic and resulting shutdowns have generated.

Ollie's should gain even more traction from consumers seeking out the treasure hunt experience at its no-frills stores where it offers extreme discounts on name-brand products, including housewares, food, books, floor coverings, toys, and hardware.

With the discount chain currently trading at $87 per share, the big price target hike indicates the analyst sees an additional 20% upside in its stock.