Five Below Shares Climb As MKM Upgrades To Buy

Shares of teen retailer Five Below Inc. rose 1.2% in early trade Wednesday, after MKM Parnters upgraded them to buy with a $35 price target, or about 25% above their current trading level. Analysts said the stock has fallen 30% in the year so far, while the S&P 500 has gained 1%. "Given our favorable view of management and the longer-term potential of the business, we've been looking for an opportunity to get constructive," they wrote in a note. MKM said it's unlikely much has changed since Five Below said in January that it expected first-quarter sales to come in at the low end of guidance. "We have no reason to think trends deteriorated in January, since it was a good month for most retailers, and since we saw solid traffic in our regular store checks," said the note. "February may have been tough with the snow/cold in the East and FIVE's limited geographic footprint."