BofA update shows where active managers are putting money
Investing.com - KeyBanc has reiterated its Sector Weight rating on Five Below (NASDAQ:FIVE), currently trading at $144.41 and near its 52-week high of $146.66, following the retailer’s second-quarter results that exceeded market expectations. According to InvestingPro data, the company maintains a "GOOD" overall financial health score, with liquid assets exceeding short-term obligations.
The company’s performance was driven by strong merchandising and product newness, which improved customer conversion rates and overall comparable store sales, according to KeyBanc analyst Bradley Thomas.
Five Below has raised its fiscal 2025 guidance, reflecting continued top-line strength expected in the third quarter, while maintaining its fourth-quarter outlook. KeyBanc sees potential upside for the fourth quarter if current positive trends continue.
The retailer is working to mitigate tariff impacts partly through pricing adjustments, though KeyBanc notes some risk remains as tariff and pricing effects could flow into 2026.
While KeyBanc expressed increasing positivity about merchandising and operational changes implemented under new CEO Winnie Park, the firm expects comparable sales to decelerate somewhat and views valuation as a potential limitation for the stock going forward. Trading at a high P/E multiple of 30.54, investors seeking deeper insights can access comprehensive valuation analysis and 12 additional ProTips through InvestingPro.
In other recent news, Five Below reported impressive second-quarter results for 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, above the expected $996 million. This strong performance has led to several analysts revising their price targets for the company. UBS raised its price target to $184 from $160, maintaining a Buy rating, highlighting a 12.4% increase in comparable sales driven mainly by transaction volume. Similarly, Jefferies increased its price target to $185 from $155, also with a Buy rating, citing strong management execution and market positioning. Meanwhile, BofA Securities adjusted its price target to $110 from $93, maintaining an Underperform rating, though acknowledging the company’s earnings per share exceeded both its own and consensus estimates. These developments reflect analysts’ mixed perspectives on the company’s future performance.
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