Five Below price target lowered to $187 from $195 at Craig-Hallum

Craig-Hallum lowered the firm’s price target on Five Below to $187 from $195 and keeps a Hold rating on the shares. Expectations coming into the Q4 print were relatively high with several analysts raising estimates in recent days. However, Q4 EPS missed as inventory shrink returned as a significant factor causing margin downside, the firm says. In addition, guidance for both Q1 and FY24 missed expectations, with comp downside partly due to slower tax refunds and shrink impact expected to affect most of FY24. Craig-Hallum believes downside on guidance is among the biggest misses in the decade-plus the company has been public, with the conference call focused on shrink mitigation efforts.