Loop Capital upgrades Five Below on merchandise, pricing changes

Loop Capital upgraded Five Below (FIVE) to Buy from Hold with a price target of $165, up from $130. The firm believes the market is underestimating the company’s near-term earnings power following its recent merchandising and pricing changes under the new CEO. In addition, Five Below’s lower shrink will bring tailwinds in the second half of 2025, the analyst tells investors in a research note. Loop sees current share levels as an attractive entry point.