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Investing.com - Jefferies raised its price target on Five Below (NASDAQ:FIVE) to $185.00 from $155.00 on Thursday, while maintaining a Buy rating on the discount retailer’s shares. The stock, currently trading at $144.41, has shown remarkable momentum with a 66.2% return over the past six months. According to InvestingPro data, the company maintains a "Good" financial health score.
The price target increase follows Five Below’s second-quarter results, which Jefferies said demonstrated strong execution by management of a concept with differentiated positioning in the market.
Jefferies highlighted that Five Below has unlimited unit growth potential, a compelling payback model, and faces virtually no direct competition in its segment.
The firm expects the momentum seen in Five Below’s recent performance to persist going forward.
Jefferies believes Five Below shares will trend back toward all-time highs over time, supporting its continued Buy recommendation on the stock.
In other recent news, Five Below reported impressive financial results for the second quarter of 2025. The company posted an adjusted earnings per share (EPS) of $0.81, which not only surpassed the forecasted $0.63 but also marked a 22.2% surprise. Revenue for the quarter reached $1.03 billion, exceeding the expected $996 million. This strong performance has caught the attention of analysts. BofA Securities raised its price target for Five Below to $110 from $93, despite maintaining an Underperform rating on the stock. The price target increase was influenced by the company’s robust sales performance. These developments highlight the company’s ability to exceed market expectations in terms of earnings and revenue.
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