Five Below price target raised to $98 from $87 at BofA

BofA raised the firm’s price target on Five Below to $98 from $87 and keeps a Neutral rating on the shares. Pending legislation to alter the de minimis exemption could substantially change the business models for Temu and Shein, which the firm argues may result in “significantly reducing the competitive pressures” on Five Below. According to the U.S. trade law expert the firm recently hosted, the likelihood of regulation going through within the next year is 75-80%, notes the analyst, who is raising the multiple applied to Five Below estimates to reflect this “potential positive catalyst.”