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Investing.com - Truist Securities raised its price target on Five Below (NASDAQ:FIVE) to $148.00 from $141.00 on Thursday, while maintaining a Hold rating on the discount retailer’s shares. According to InvestingPro data, the company currently trades at a P/E ratio of 31.27x, with a market capitalization of $8.22 billion.
The price target increase follows Five Below’s second-quarter results, which exceeded Truist’s upwardly-revised estimates. The retailer reported comparable sales growth of 12.4%, surpassing Truist’s projection of 11.0%.
The stronger sales performance drove better earnings due to fixed-cost leverage, though this was slightly offset by tariff-related impacts, according to Truist Securities.
Truist noted that while Five Below is making progress through workforce improvements and optimizing pricing and inventory, the company faces tougher comparisons ahead, potential tariff risks, and stabilizing sales at competitor Temu.
The firm pointed out that Five Below stock has risen approximately 150% since "Liberation Day" and is up 40% year-to-date, compared to gains of about 30% for the S&P 500, placing the stock at roughly 30 times earnings.
In other recent news, Five Below reported a strong second quarter of 2025, surpassing both earnings and revenue forecasts. The company achieved an adjusted earnings per share of $0.81, exceeding the forecasted $0.63, and reported revenue of $1.03 billion, which was higher than the expected $996 million. This performance was driven by strong merchandising and product newness, which improved customer conversion rates and comparable store sales. In response to the solid results, UBS raised its price target for Five Below to $184, maintaining a Buy rating, highlighting the significant 12.4% increase in comparable sales. Similarly, Jefferies increased its price target to $185, also maintaining a Buy rating, citing strong management execution and the company’s differentiated market positioning. Meanwhile, BofA Securities raised its price target to $110, though it maintained an Underperform rating, acknowledging the company’s earnings per share exceeded both their and consensus estimates. KeyBanc reiterated its Sector Weight rating, noting the company’s strong merchandising as a key driver of performance. These developments reflect Five Below’s robust financial health and strategic positioning in the retail market.
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