Five Below price target raised to $160 from $135 at Morgan Stanley

Morgan Stanley raised the firm’s price target on Five Below (FIVE) to $160 from $135 and keeps an Equal Weight rating on the shares. Solid merchandise and in-store execution leaves room for comp upside in the second half, though tariff headwinds will weigh on profitability over the coming months and into 2026, the analyst tells investors in a post-earnings note. Given harder year-over-year comparisons, potential tariff pressures, and the lapping of competitor closures, the firm argues that 2026 earnings power is “the next critical juncture of this story” and notes that currently forecasts 2026 comps of 3%, though adds that it has “low conviction in our estimate.”