Five Below price target raised to $190 from $160 at Wells Fargo

Wells Fargo analyst Edward Kelly raised the firm’s price target on Five Below to $190 from $160 and keeps an Overweight rating on the shares. The analyst believes Five Below’s Q3 update should raise investor confidence in what has become a controversial stock. While the Q3 EPS beat isn’t all that material given it’s a small quarter, there were quite a few encouraging signs from the company, Kelly argues. Momentum improved throughout the period and holiday seems to be off to a good start, suggesting that only slightly improved Q4 guidance of flat comps at the mid-point could be conservative, he adds.