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Investing.com - UBS raised its price target on Five Below (NASDAQ:FIVE) to $184.00 from $160.00 on Thursday, while maintaining a Buy rating on the discount retailer’s shares. The stock, currently trading at $144.41, has shown remarkable strength with an 82.94% return over the past year and is trading near its 52-week high of $146.66.
The price target increase follows Five Below’s strong second quarter performance, which featured a 12.4% comparable sales increase. With annual revenue reaching $4.03 billion and a healthy gross profit margin of 35%, UBS noted that two-thirds of the sales growth was driven by transaction volume, with the remainder coming from higher average ticket size.
UBS highlighted that Five Below’s momentum has continued into the current period, according to company guidance, while maintaining a conservative outlook for the important fourth quarter.
The investment firm projects Five Below will exceed $5 in earnings per share this year and approach $6 or better next year, levels UBS believes warrant a healthy multiple.
UBS also cited Five Below’s significant room for new store openings across the United States as a factor supporting potential further share price appreciation. For deeper insights into Five Below’s growth potential and 12 additional exclusive ProTips, check out the comprehensive analysis available on InvestingPro.
In other recent news, Five Below delivered a strong performance in the second quarter of 2025, surpassing both earnings and revenue forecasts. The company reported adjusted earnings per share of $0.81, exceeding the forecasted $0.63, and achieved revenue of $1.03 billion, surpassing the expected $996 million. Following these results, Jefferies raised its price target for Five Below to $185, maintaining a Buy rating, citing strong management execution. BofA Securities also increased its price target to $110 from $93, despite maintaining an Underperform rating, acknowledging the company’s earnings per share exceeded both their estimate and the consensus estimate. These developments highlight Five Below’s strong sales performance and differentiated market positioning.
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