Five Below (FIVE) - Get Five Below, Inc. Report shares rose sharply Wednesday as several analysts raised their share-price target for the tween/teen discount retailer after it offered a positive outlook in its earnings report.
The company has now reopened about 90% of its stores, CEO Joel Anderson said. “We are very pleased with the initial sales trends.” he said.
Five Below also said it still plans to open between 100 and 120 new stores this year.
Guggenheim raised its share price target to $120 from $105 and kept its buy rating.
“As would be expected, investors are more focused on the early results of re-opened stores than the big margin-driven 1Q miss,” Guggenheim analyst John Heinbockel wrote in a report.
Five Below should benefit from pent-up demand with kids stuck at home during the coronavirus pandemic and from the government’s fiscal stimulus. That could spark modest sales growth in the second half of the year, he said.
At RBC Capital Markets, analysts lifted their share-price target to $115 from $102 and maintained their outperform rating.
While questions remain about how much foot traffic Five Below will regain, pickups should bolster sales, as consumers opt for contactless shopping, RBC analysts said in a report, according to Bloomberg.
Meanwhile, Gordon Haskett upgraded Five Below to buy from hold, boosting its price target to $135 From $80. And Jeffries increased its price target to $140 From $89, affirming its buy rating.
Five Below shares recently traded at $112.61, up 8.38%. The stock has jumped 24% over the past three months.