Jefferies raises Five Below stock price target to $155 from $138

On Thursday, Jefferies analysts raised the price target for Five Below (NASDAQ:FIVE) stock to $155 from $138, while maintaining a Buy rating. Currently trading at $121.24, the stock has shown strong momentum with a 15.5% gain year-to-date. The decision follows the company’s first-quarter results, which highlighted a strong business model with significant real estate potential and no direct competitors. According to InvestingPro data, 8 analysts have recently revised their earnings estimates upward for the upcoming period.

The analysts noted that Five Below’s execution appears to be back on track, with solid guidance that could potentially exceed expectations. The company, with a market capitalization of $6.73 billion, has demonstrated strong fundamentals with a healthy current ratio of 1.79 and revenue growth of 8.91%. The report emphasized the company’s robust performance and strategic opportunities in the market.

In addition to the financial update, Five Below announced a transition in its Chief Financial Officer position. Despite this change, Jefferies analysts believe it will have minimal impact on the company’s overall trajectory.

The analysts expressed confidence in the company’s current valuation, suggesting that investors should continue purchasing shares at these levels.

In other recent news, Five Below has reported robust financial results for the first quarter of fiscal year 2025, with earnings per share (EPS) of $0.86, exceeding the forecasted $0.66. The company also reported a revenue increase to $970.5 million, surpassing the expected $932.86 million, marking a 19.5% year-over-year growth. Analysts at Telsey and BofA Securities have responded positively, raising their price targets for Five Below’s stock to $128 and $93, respectively, following the strong earnings report. Telsey maintained a Market Perform rating, while BofA Securities kept an Underperform rating, citing concerns over potential EPS decline in fiscal 2025. Five Below has also revised its fiscal 2025 guidance, projecting sales between $4.3 billion and $4.4 billion, with comparable sales growth of 3% to 5%. The company anticipates some challenges ahead, including tariff pressures and macroeconomic factors, but remains optimistic about its merchandising initiatives and store expansion plans. Additionally, Five Below announced an executive change, with Chief Financial Officer Kristy Chipman stepping down for personal reasons and Chief Operating Officer Ken Bull stepping in as interim CFO. KeyBanc analysts have maintained a neutral stance, acknowledging the company’s positive trends but cautioning about potential risks in the second half of the year.

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