Key facts
- Wolfe Research lowered the stock price target for Five Below.
- Concerns about current trends were cited as the reason for the downgrade.
- Five Below's stock dropped 12% in premarket trading.
- The company reported strong Q1 results and provided optimistic full-year guidance.
Wolfe Research has reduced the stock price target for Five Below, citing concerns about the company's current trends. This analyst action comes after Five Below's stock experienced a 12% decline in premarket trading, despite the company reporting strong first-quarter results and providing optimistic guidance for the full fiscal year. The retailer's first-quarter sales reached $1.3 billion, and it forecasts full-year sales between $5.4 billion and $5.48 billion, with an adjusted EPS projection of $8.85. The price target reduction by Wolfe Research adds another layer of pressure to the stock following its initial market reaction. Demand for viral 'squishy' products also helped the discount retailer's strong first quarter.