Shares of Five Below (FIVE - Get Report) flew off the shelves Friday after the discount retailer won a big boost from an industry analyst.

Five Below's stock price rose 1.87% to $126.65 a share after William Blair initiated coverage of the retailer's stock with an overweight rating, according to published reports.

Analysts at William Blair cited the retailer's "treasure hunt appeal" for shoppers, with the chain offering "extreme value," given its pricing of $5 and below for a range of items.

William Blair analyst Daniel Hofkin also cited the company's "pristine balance sheet" and "solid free cash flow" even as it aggressively rolls out new stores, Bloomberg reported.

And while Five Below's stock price is not cheap compared to its industry peers, the "higher multiples" make sense based on the retailer's "consistent execution," the analyst report noted.

Five Below opened 44 new stores during the second quarter, bringing its total up to 833 stores in 36 states, according to Zacks Investment Research. The discount retailer is currently in the midst of opening up another 55 stores in the third quarter ending in November, with a goal of 150 new stores by the end of the fiscal year.

Five Below is forecasting a 3% increase in same-store sales in 2019, with net sales projected to fall between $1.872 billion and $1.892 billion, Zacks said.