Five Below (FIVE) PT Lowered to $104 at BofA Securities

BofA Securities analyst Melanie Nunez lowered the price target on Five Below (NASDAQ: FIVE) to $104.00 (from $125.00) while maintaining a Neutral rating.

The analyst comments "FIVE announced weaker than expected quarter-to-date results (10 weeks through July 13th) of sales +9.5% and comps -5%. The company cut 2Q sales and EPS guidance below consensus, now expecting sales of $820-826mn (vs $830-850mn prior), comps down 6- 7% (prior -MSD), and EPS of $0.53-0.56 (vs $0.57-0.69 prior; consensus $0.63). A pressured low-income consumer and execution issues related to its product offering are creating challenges. We are cutting our 2Q sales/EPS estimates by 2%/13% to $821mn/$0.54 on lower comps (now -7% vs prior -5%) and further margin deleverage. We are lowering our PO to $104 (from $125), now 18x F25 EPS estimates (vs 21x prior) on lower numbers and a more challenged sales outlook."

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