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What Are Analysts Recommending for Five Below Stock?

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Rating synopsis

The majority of the analysts that cover Five Below (FIVE) have maintained a “buy” rating on the stock. As of April 13, 2018, of the 17 analysts covering the stock, 59% recommended a “buy,” while the remaining recommended a “hold.”

Following the fiscal 4Q17 results announcement on March 21, 2018, many analysts revised their target price for Five Below. On March 23, 2018, Barclays raised the price target to $68.00 from the $60.00 projected earlier. On March 22, 2018, Dougherty upped the price target to $85.00 from $82.00, while Guggenheim increased the price target to $75.00 from $70.00 earlier. Deutsche Bank also revised the target price to $85.00 from $83.00.

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Five Below is a fast-growing discount retail chain in the US that primarily caters to teens and pre-teens. The company has been thriving in a retail environment that has been drastically altered by the arrival of online retailers. Most of the retailers have been impacted by competitive pricing. However, Five Below prices its merchandise for $5 or lower. This low pricing coupled with an attractive product portfolio has been the company’s biggest driving factor. The company’s fiscal 4Q17 results highly benefitted from a strong holiday season. The company is now on a store footprint expansion drive. Currently, the analysts’ 12-month average target price for Five Below stock is $77.93, which reflects a 3.6% upside to the stock price as of April 13, 2018.

Peer ratings

Out of 30 analysts covering Dollar General (DG), 57% have provided a “hold” rating, while 43% rated it as a “buy.” About 71.0% of the 28 analysts covering Dollar Tree (DLTR) have given the stock “buy” ratings, while just 29% rated it as a “hold.” Out of the 15 analysts covering Big Lots (BIG) stock, 53% have provided “buy” ratings, while 47% have rated it as a “hold.”

Currently, the analysts’ target price for Dollar General is $108.46, reflecting a 12.7% upside to the stock price as of April 13, 2018. For Dollar Tree, the mean target price is $110.36, which indicates a 13.6% upside to share prices as of April 13, 2018. The mean target price for Big Lots is $57.79, which indicates a 37.5% upside to the stock price as of April 13, 2018.

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