Five Below price target raised to $118 from $88 at Truist

Truist raised the firm’s price target on Five Below (FIVE) to $118 from $88 but keeps a Hold rating on the shares. Following the “implosion” seen in the company’s Q2 results, its Q3 was improved, with comps registering a slight increase amid a better consumer environment, more seasonal “reasons” to shop, as well as improved store execution and merchandising, the analyst tells investors in a research note. Truist adds however that while it “wants to be bullish” given Five Below’s store growth, the company’s comps are still flattish and expected to be down in Q4, with margins that will be pressured in 2025 in the absence of above-3% comps and the stock valuation that has moved a lot.