JPMorgan downgrades Five Below on declining comp ticket

JPMorgan downgraded Five Below to Neutral from Overweight with a price target of $170, down from $215. The firm’s work points to an underlying low-to-mid-teens earnings growth profile for Five Below post 100 basis points of operating margin recapture through fiscal 2026. The analyst models fiscal 2204 earrings per share of $5.96, below the Street at $6.04. Over the past eight consecutive quarters, Five Below’s comp ticket has declined year-over-year, as consumers continue to manage to a defined budget, the analyst tells investors in a research note. JPMorgan cites macro and micro concerns for the downgrade.