Five Below downgraded to Perform from Outperform at Oppenheimer

Oppenheimer downgraded Five Below to Perform from Outperform with a price target of $200, down from $235. The analyst believes underlying growth dynamics for Five Below “are slowing, at least somewhat,” given a now larger base of units, waning remodeling opportunities, and stepped-up reinvestment requirements, on top of already elevated operating margins. The company continues to represent one of the more compelling, longer-term expansion opportunities in consumer, but as the pace of growth for the chain subsides gradually, the “still premium multiple” at which shares trade could moderate towards recent troughs, the analyst tells investors in a research note.