UBS Reiterates Buy on Five Below (FIVE) Following 2Q Report

September 1, 2016 9:29 AM EDT
Get Alerts FIVE Hot Sheet
Price: $38.98 -1.96%

Rating Summary:
    14 Buy, 8 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 24 | Down: 17 | New: 14
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UBS reiterated a Buy rating and $55.00 price target on Five Below (NASDAQ: FIVE) following the company's 2Q earnings report. following the company's 2Q earnings report. FIVE reported EPS of $0.18. ahead of consensus' estimate of $0.17. The outcome was driven by 50 bps of GM expansion, which was above the 20 bps forecast.

Analyst Michael Lasser commented, "While FIVE’s 3.1% comp was a bit softer than our 4.0% (& the 3.4% cons.), the result was consistent w. its guidance & its LT algorithm. The fact that traffic was down in the Q & the comp was driven by a rise in ticket will capture some attention. But, we think this was heavily influenced by the uncooperative weather in many of its markets to start the Q (~50% of its stores are in the mid-Atlantic / NE). Plus, we think its results were better in June / July. Further, it guided to a 1-2% comp for 3Q, but this is on a tougher compare. So, the 2-year stacks are holding steady in the 6-7% range. Assuming it can sustain this level through the end of the year, we estimate it could generate a ~3% comp in the ever important 4Q (when it generates ~70% of its FY EPS). We believe a healthy outlook for the holiday makes this a compelling stock idea into end of the year and beyond."

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 $44.56 yesterday.

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