Jul. 9 at 8:08 PM
Mizuho upgraded Five Below to Outperform from Neutral, arguing that the retailer's nearly 30% share-price decline has created an attractive buying opportunity. The firm said strong customer demand, improved merchandising, viral social media trends, and solid customer retention continue to support the company's long-term growth outlook, even as comparable sales are expected to moderate after an exceptional first quarter.
Mizuho trimmed its price target slightly to
$220 from
$225, still implying more than 20% upside, noting the stock now trades below 20x forward earnings, a valuation historically seen only during major disruptions. The brokerage expects Five Below to outperform Wall Street estimates in the second half of fiscal 2026, forecasting 8%-9% comparable sales growth and adjusted EPS of
$9.22, above consensus.
$FIVE