Deutsche Bank Downgrades Five Below (FIVE) to Hold

Deutsche Bank downgraded Five Below (NASDAQ: FIVE) from Buy to Hold with a price target of $30.00 (from $42.00). Analyst Paul Trussell has concerns about traffic slowdown.

"Looking over the next several years, we still believe that double-digit store growth can drive ~22 24% EPS growth for this unique retail story. However, in the near-term we think FIVE is particularly susceptible to the broader traffic slowdown that we are seeing, and so we are taking down our comp estimates below the Street and guidance. We acknowledge that new management could potentially surprise to the upside if merchandising and marketing initiatives gain traction and turn the store into more of a Holiday destination, but given 2Q's top-line disappointment despite a better environment, we prefer to be on the sidelines until we have more evidence of consistently strong traffic trends," said Trussell.

For an analyst ratings summary and ratings history on Five Below click here. For more ratings news on Five Below click here.

Shares of Five Below closed at $29.08 yesterday.

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