In a report released today, Simeon Gutman from Morgan Stanley maintained a Hold rating on Five Below (FIVE – Research Report), with a price target of $110.00.
Simeon Gutman has given his Hold rating due to a combination of factors that influence Five Below’s current market position. The company has shown positive momentum with improvements in new product introductions, value positioning, and merchandising, which are expected to continue into the next quarter. However, the stock’s valuation appears inexpensive compared to its historical range, suggesting potential for growth if these positive trends persist.
Despite these strengths, Five Below faces challenges that justify a Hold rating. The business is highly seasonal, with a significant portion of its earnings concentrated in the fourth quarter. Additionally, the impact of tariffs is expected to pressure margins, with a notable adverse effect anticipated in the latter half of 2025. These factors create a balanced risk/reward scenario, leading to a cautious outlook with a price target adjustment to $110.
In another report released today, Melius Research also maintained a Hold rating on the stock with a $95.00 price target.
Based on the recent corporate insider activity of 74 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of FIVE in relation to earlier this year.
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