Morgan Stanley said the investor event by Five Below (NASDAQ: FIVE) on Wednesday reinforced its view that the discount chain is a prominent growth story in retail.
Analyst Simeon Gutman and team view Five Below (FIVE) as a core holding for long-term investors.
FIVE breakdown: “The key elements of FIVE’s competitive advantages (merchandising, store experience and value) are intact and the innovation pipeline to drive faster growth is as full as we’ve ever seen it (and now includes a fully realized Five Beyond vision, remodels / conversions, and new experiential additions like ear piercings and balloons). The stock’s recent pullback – down 23% YTD including today’s 6.5% decline on a below consensus Q1 / full year ’22 guide – seems to present an attractive buying opportunity. “
The firm reiterated an Overweight rating on FIVE and assigned a price target of $ 210 vs. the 52-week trading of $ 143.44 to $ 237.86.
Read more about Five Below’s strategic update including a plan to triple its store count by 2025.