Wells Fargo increased its price target on Five Below to $295 from $260 while keeping an Overweight rating, citing stronger-than-anticipated second-quarter results and an improved outlook.
Telsey also raised its target to $305 from $280, maintaining an Outperform rating. Five Below’s shares were trading at $243.08 at the time of the update, up 61% over the past year, with a trailing P/E of 30.44 and a PEG ratio of 0.46.
Wells Fargo noted that a 25x earnings multiple remains justified given the company’s growth trajectory, despite anticipated tough comparisons in 2027. The firm highlighted underlying momentum, high single-digit unit growth, and margin recapture as supportive factors.
The second-quarter adjusted earnings came in at $1.68 per share, exceeding the $1.33 consensus estimate, while revenue reached $1.26 billion against a $1.21 billion forecast. Comparable sales rose 14%, driven by a 13% increase in traffic and transactions. Over the last twelve months, revenue grew 26%. The results included a $2.33 benefit from IEEPA tariff refunds and a $0.02 headwind from retention awards.
Following the results, Five Below raised its full-year outlook. Eleven analysts have revised earnings estimates upward for the upcoming period, according to InvestingPro data. The stock is one of more than 1,400 US equities covered by comprehensive Pro Research Reports, though InvestingPro analysis indicated the shares were slightly overvalued at current levels.
