Analyst Simeon Gutman from Morgan Stanley maintained a Hold rating on Five Below and increased the price target to $190.00 from $160.00.
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Simeon Gutman has given his Hold rating due to a combination of factors that influence the financial outlook of Five Below. The company has shown strong performance with a significant increase in comparable sales and transaction growth, which suggests positive momentum. However, ongoing tariff pressures are expected to continue affecting profitability, limiting the potential for margin expansion in the near term.
Despite raising the price target to $190, the valuation of Five Below’s stock is nearing its historical average, which could restrict further upside. Additionally, while there are opportunities for growth through customer engagement and merchandising, the anticipated below-average earnings growth in 2026 poses a challenge. These elements contribute to a balanced risk/reward scenario, justifying the Hold rating.
Gutman covers the Consumer Cyclical sector, focusing on stocks such as AutoZone, Dick’s Sporting Goods, and Best Buy Co. According to TipRanks, Gutman has an average return of 3.9% and a 59.48% success rate on recommended stocks.
In another report released on December 5, Citi also maintained a Hold rating on the stock with a $175.00 price target.