Five Below (FIVE) PT Raised to $110 at JPMorgan

JPMorgan analyst Matthew Boss raised the price target on Five Below (NASDAQ: FIVE) to $110.00 (from $83.00) while maintaining a Underweight rating.

The analyst comments "FIVE reported 3Q EPS of $0.42 (above mgmt’s $0.10-$0.22 guidance & Street at $0.17) driven by a beat across all line items with: (1)SSS up +0.6% (above our Street-high -2.5%) and (2) 110bps of adj. EBIT margin expansion y/y to 3.3% (vs. Street 1.3%) comprised of 295bps of gross margin expansion (vs mgmt’s +190bps guidance) and 185bps of SG&A deleverage (vs mgmt’s 290bps guidance).Worth noting, excluding the $21.2M non-recurring inventory write-off adjustment to COGS – gross margin was 30.7% (or 145bps below Consensus) translating to gross profit dollars of $259M (vs. Street at $257M) and EPS of $0.13 (below Consensus at $0.17)."

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