BofA analyst Lorraine Hutchinson lowered the firm’s price target on Five Below (FIVE) to $75 from $88 and keeps an Underperform rating on the shares. A comp beat and assortment improvements in Q4 are “encouraging,” but the firm’s expectation is for positive comps and stable store growth to be offset by gross margin pressure from tariffs, which will result in a decline in earnings in FY25 and flat earnings in FY26, the analyst tells investors. The firm is lowering its FY25 and FY26E EPS estimates by 6.7% and 12.5%, respectively, on tariff pressure and calls it “difficult to argue for multiple expansion” with declining FY25 EPS and flat FY26 EPS.
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Read More on FIVE:
- Five Below price target lowered to $86 from $93 at Truist
- Five Below price target lowered to $110 from $120 at Morgan Stanley
- Balanced Outlook for Five Below: Positive Momentum Amid Seasonal and Tariff Challenges
- Five Below Faces Tariff Pressures and Limited Growth Prospects Despite Strong Q4 Performance
- Five Below price target lowered to $95 from $125 at Melius Research