Truist sees more room for Five Below to rise from here. The bank upgraded the off-price retailer to buy from hold. Analyst Scot Ciccarelli also raised his price target to $216 per share from $179, which implies approximately 25% upside. Despite the stock’s year-to-date rally — Five Below is up 65% in 2025 — Ciccarelli pointed out that shares are still trading below their historical average, while the company’s “unicorn-like growth” could command a significantly higher multiple from here. Valuation hasn’t changed since July, while both merchandise values and Five Below’s operational efficiencies have continued to improve, he said. FIVE YTD mountain FIVE YTD chart “FIVE has largely moved in-line with the upward earnings revisions and the multiple is still well below historical. Given the sustainability of the comps and upward earnings potential, we think the stock has much further to go on the upside,” he wrote. The analyst applauded Five Below’s recent sales composition and breadth, calling the third quarter a “game changer” for this stock. This should in turn make Five Below’s sales growth “far more sustainable” than he had previously anticipated. Ciccarelli added that Five Below should be a primary beneficiary of outsized tax refunds early next year, since it is a retailer with a middle income customer base and heavy discretionary offerings. “After hitting a wall last year due to stale merchandise, poor product values and in-store disruptions, FIVE has turned around their operation, posting beats all year, with a massive step-up in Traffic, Ticket and total comp in 3Q25,” he said. “Given these trends, the upcoming tax refund season and the additional levers to mrgns (still well-below historical levels), we believe the stock can command a significantly higher multiple.” Five Below shares rose more than 2% following the upgrade.
