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Wells downgrades Five Below to Equal Weight, struggles to see material upside

Wells downgrades Five Below to Equal Weight, struggles to see material upside

As previously reported, Wells Fargo analyst Edward Kelly downgraded Five Below to Equal Weight from Overweight with a $215 price target. The firm continues to like the fundamental story of Five Below, but struggles to see material upside in the stock from current levels. Wells’ concerns include unique exposure to the shortened holiday selling period in 2024, questions around the size of the potential margin expansion opportunity in 2024, overly aggressive consensus expectations for 2024/2025, and balanced risk/reward.

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