Truist Raises Five Below (FIVE) Price Target, Maintains Hold Rating

On June 2, Truist Securities increased its price target on Five Below, Inc. (NASDAQ:FIVE) to $112 from $81 while maintaining a Hold rating, citing a more favorable view on tariff impacts and stronger-than-expected sales performance. The revised outlook reflects a shift in expectations across the consumer sector, where companies have shown greater adaptability in mitigating cost pressures.

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In a note to investors, Truist highlighted that many retailers, including Five Below, Inc. (NASDAQ:FIVE), have developed more agile sourcing strategies and cost-control measures, making them less vulnerable to tariff fluctuations than previously assumed. These improvements prompted the firm to raise its FY25 and FY26 earnings estimates for the discount retailer. Sales trends have also been more resilient than expected, helping to offset concerns around potential consumer pullback and pricing sensitivity. Still, Truist cautioned that the path ahead is not without challenges. Higher base effect in the second half of the year, possible changes in trade policy, and the risk of demand softening due to price adjustments remain on the radar.

Despite the upward revision, the Hold rating reflects a balanced view. While the near-term environment appears more constructive than earlier in the year, uncertainty tied to external policy and elasticity keeps Truist from taking a more bullish stance.

Five Below’s continued ability to adapt in a shifting retail landscape will be critical in navigating what could be a volatile second half.

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