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Shares of Five Below (FIVE - Get Report) climbed 1.9% to $131.61 Thursday after JPMorgan Chase upgraded the specialty retailer to overweight from neutral.

Analyst Matthew Boss also raised his price target for the Philadelphia-based company to $150 from $133 a share after hosting management at JPMorgan's Retail Round-Up. Boss noted Five Below's strong store unit growth and positive traffic trends at existing stores and expressed confidence the company will see annual net income growth of more than 20%.

Last month, Five Below reported fourth-quarter net income of $89.3 million, or $1.59 a share, up from $67.4 million, or $1.21 a share, a year ago. Sales totaled $602.7 million, up from $504.8 million last year. The FactSet consensus called for earnings of $1.57 a share and sales of $601 million. Same-store sales increased 4.4%, beating expectations for 4.2% growth.

Five Below said it expects first-quarter sales in the range of $361 million to $366 million and earnings in the range of 32 cents to 35 cents a share. The FactSet consensus is for sales of $364 million and earnings of 35 cents a share. For the year, the company expects said it expects sales in the range of $1.865 billion to $1.885 billion and earnings in the range of $3 to $3.07 a share. FactSet called for sales of $1.891 billion and earnings of $3.08 a share. Five Below expects to open 145-to-150 stores in fiscal 2019, which would bring the total number of stores to 895 to 900.

"We believe we are in a great position for 2019," Joel Anderson, president and CEO, said in a conference call with investors. "Overall, we continue to make disciplined investments to further strengthen our foundation and support the growth and scaling of Five Below. We remain committed to our key strategic priorities, and we'll continue to invest in our stores, merchandising, marketing, people, systems and infrastructure."

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