UBS raises Five Below stock price target to $160 from $110

On Thursday, UBS analysts raised the price target for Five Below (NASDAQ:FIVE) stock from $110 to $160, maintaining a Buy rating. The analysts noted the company’s strong recent performance as a key factor in their decision. The stock, currently trading at $133.54 with a market capitalization of $7.42 billion, has shown impressive momentum with a 15.51% gain year-to-date. According to InvestingPro data, 8 analysts have recently revised their earnings expectations upward for the upcoming period.

The analysts highlighted several reasons for Five Below’s robust performance, suggesting that the company can maintain this momentum. They believe the company’s conservative assumptions about future trends could lead to upward revisions in its stock price. The company’s financial health is rated as GOOD by InvestingPro, with strong revenue growth of 8.91% and a reasonable P/E ratio of 16.57.

The analysts expressed confidence in Five Below’s potential for growth, despite recent movements in its stock price. They see room for further upside, leading to the increased price target.

Five Below, a specialty discount store, has been experiencing strong sales trends, according to the analysts. This positive outlook contributed to their decision to adjust the price target upward.

The new price target reflects UBS analysts’ optimism about the company’s future performance and potential for continued growth in the coming months.

In other recent news, Five Below has reported strong earnings and revenue results, prompting several analyst firms to adjust their price targets. Craig-Hallum increased its price target to $152, maintaining a Buy rating, driven by a 7% increase in same-store sales and a positive growth trajectory despite tariff challenges. Mizuho (NYSE:MFG) raised its target to $115, citing broad-based sales growth and improved conversion rates, while maintaining a Neutral rating. Similarly, Citi increased its target to $135, noting improved sales trends and increased guidance for the fiscal year 2025, also keeping a Neutral rating.

Truist Securities adjusted its price target to $128, maintaining a Hold rating, as Five Below’s first-half performance exceeded expectations, although caution was advised for the latter half due to tariff pressures. Additionally, Five Below has partnered with Uber (NYSE:UBER) Eats to expand its delivery services nationwide, offering customers convenient access to its products through the Uber Eats platform. This collaboration is part of a strategic move by Uber Eats to diversify its offerings beyond food delivery. The developments reflect Five Below’s ongoing efforts to enhance its market presence and address external challenges.

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