Five Below (FIVE) PT Lowered at UBS Despite 'Solid' Q3 Beat
UBS maintained a Buy rating on Five Below (NASDAQ: FIVE), and cut the price target to $39.00 (from $43.00), following the company's 3Q earnings report. FIVE's 3Q was really solid. Its 4.8% comp was well above 3.5% estimates (cons. 3.0%) despite a tough retail picture. Its new Mississippi store had one of its best 2015 openings. This helps prove the concept can resonate in smaller markets and adds credibility to its LT 2k store goal.
Analyst Michael Lasser commented, "Almost any way you look at it, we think FIVE's 3Q was really solid. Its 4.8% comp was well above our 3.5% est. (cons. 3.0%). We find this particularly remarkable in light of the tough retail picture in 3Q w. many others reporting sluggish trends. Importantly, FIVE's growth was traffic driven. Customers are appreciating its quest to improve newness (incl. Shopkins & Minions merch). Plus, its ramped up marketing efforts paid off & should support its 4Q performance. Encouragingly, its new store opportunity still appears strong. NSP remains high (98% vs. our 95% forecast) w. strength across many markets. Its new Mississippi store had one of its best 2015 openings. This helps prove the concept can resonate in smaller markets and adds credibility to its LT 2k store goal. Thus, we are convinced it can sustain 20% EPS growth. We would buy the stock."
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 $27.91 yesterday.