JPMorgan sees several future catalysts for Five Below as the fall holiday season approaches. The bank upgraded the discount retailer’s stock to an overweight rating from neutral. The company also raised its price target from $154 to $186 per share. Five Below’s stock has soared 49% this year. JPMorgan’s new price target is about 19% above Friday afternoon’s closing price. FIVE YTD Mountain FIVE YTD Chart Analyst Matthew Boss pointed to a unique year-over-year opportunity in October with Five Below’s Halloween offering as a catalyst. Continued pricing tailwinds and trading momentum also stem from Five Below becoming a “one-stop” holiday shop with refreshed Thanksgiving and Christmas merchandise for consumers, he added. Mr. Boss also praised Five Below’s management team’s strong direction and recent strategic initiatives. He said, “We see management’s recent efforts to improve product (improved speed/tracking across FIVE’s eight worlds and diversified trends), marketing (strengthened digital/social efforts), and store experience (simplified display/furnishings and price clarity) to support consistent same-store sales growth, with high visibility into gross revenue supported by store growth.” Ahead of Five Below’s next earnings release, Boss raised his third-quarter earnings estimate to 38 cents a share, beating the street consensus of 22 cents a share and management’s guidance of 12 cents to 24 cents a share. He added that he sees potential for further upside to Wall Street’s 10% same-store sales growth forecast. (Learn the best strategies for 2026 from inside the NYSE with Josh Brown and others on CNBC PRO Live. Tickets and information here.)
