KeyBanc analyst Bradley Thomas has maintained their neutral stance on FIVE stock, giving a Hold rating on May 2.
Bradley Thomas has given his Hold rating due to a combination of factors impacting Five Below’s outlook. Despite the company announcing strong first-quarter comparable sales and raising its earnings guidance, there are concerns about the ongoing tariff risks, as a significant portion of Five Below’s products are sourced from China. This tariff exposure poses a potential threat to the company’s future profitability, which tempers the otherwise positive sales performance.
Additionally, while the transition in board leadership and the appointment of a new CEO have been seen as positive steps, the uncertainty surrounding operating margins and the broader economic environment contribute to a cautious stance. The company’s improved performance under the new CEO is encouraging, but the external risks and the need for further evidence of sustained growth lead to the decision to maintain a Hold rating.
In another report released on May 2, J.P. Morgan also maintained a Hold rating on the stock with a $80.00 price target.