Five Below initiated with a Neutral at Credit Suisse

Credit Suisse analyst Karen Short initiated coverage of Five Below with a Neutral rating and $185 price target. Five has one of the more attractive growth profiles in the space and is well positioned to benefit from trade down and ongoing share gains from its unique merchandise assortments and value focus, Short tells investors in a research note. However, Q4 typically accounts for 40% of its sales and 65% of operating profit and there are risks that the "landscape becomes more challenging" in the quarter and into 2023, says the analyst.