Mizuho Securities raised its price target on Five Below to $295 from $278 while maintaining an Outperform rating, citing the discount retailer’s sustained sales momentum and outperformance against expectations.
The stock, trading near $243, offers roughly 12% upside to the new target, according to the firm. Five Below delivered adjusted earnings of $1.68 per share in the second quarter of fiscal 2026, exceeding the $1.33 per share forecast. Revenue reached $1.26 billion, surpassing the $1.21 billion estimate.
Comparable sales growth accelerated for the fifth consecutive quarter, rising more than 13% in the period. Transaction-led growth drove the increase, while average ticket sizes decelerated to below 1% growth. Low single-digit contributions from squishy dumplings mirrored the first quarter’s performance.
Analysts at Telsey, Wells Fargo, and Guggenheim also raised their targets, with Telsey lifting its call to $305 and Wells Fargo to $295. Guggenheim adjusted its target to $290 while maintaining a Buy rating. InvestingPro data shows 11 analysts have revised earnings estimates upward for the upcoming period.
Mizuho analyst David Bellinger noted the beat and raised guidance reflect a model aligned with its core customer base. The company raised its full-year revenue growth guidance to 11%-14% from a prior implied 6%-8%, citing ongoing freight headwinds of approximately 30 basis points expected to persist into the second half.
Five Below’s shares have delivered a 61% return over the past year, outperforming broader retail benchmarks.
