$FIVE 0.56 Developing

Notable posts

• @wallstengine bullish 40 eng

  Mizuho Upgrades $FIVE to Outperform from Neutral, PT $220 Analyst comments: "We now see a more favorable risk/reward profile for a business with sustained momentum and a merchandising team fully dialed in. Comparable sales will decelerate from here following a squishy-induced +22.7% gain in Q1; however, we do not view this as an impediment to owning the shares. Our positive view contemplates: (1) upside to second-half Street estimates as new customers are being retained extremely well; (2) paid Instagram and TikTok influencers are amplifying trends and expanding the company’s reach across core customer demographics; and (3) EBIT margin should expand further as average store volumes build closer to $3 million per unit versus the historical $2 million+ per store. At current levels, we believe the pendulum has swung too far on valuation. Our $220 price target implies upside potential of more than 20%." Analyst: David Bellinger

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• @wallstengine bullish 37 eng

  Bernstein SocGen Group Upgrades $FIVE to Outperform from Market Perform, PT $250 Analyst comments: "We find FIVE to be in a stronger fundamental position, with improved merchandising and marketing supporting sustainable mid-single-digit comparable sales growth. Coupled with a high-single-digit contribution from store growth and the potential for additional buybacks, this supports a 20%+ EPS compound annual growth rate from FY25 through FY28E. Despite posting a 23% comparable-sales increase in Q1, the stock sold off approximately 30% peak to trough, as potentially decelerating comparable sales and a difficult comparison spooked the market. Fads aside, however, we believe FIVE’s underlying comparable-sales momentum has improved from approximately 3.5% before COVID to closer to the mid-single-digit range today. The improved underlying comparable sales are the result of fundamental changes to stores, a renewed focus on core customers, a new social media-focused advertising model, and a newfound appreciation of pricing power amid a benign competitive environment. Meanwhile, we expect FIVE to sustain its approximately 7% sales contribution from new-store growth, with the potential to reaccelerate store growth against stronger business fundamentals. This would support a low-double-digit to mid-teens sales growth algorithm through FY28. Combined with share buybacks, this could produce a 20%+ EPS compound annual growth rate." Analyst: Zhihan Ma

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