Five Below (NASDAQ: FIVE) had its price target raised to $240 from $225 by Craig-Hallum, which reiterated its Buy rating.

The revised target was based on an unchanged 30x multiple applied to the firm's fiscal 2027 earnings per share estimate of $8.00, up from a prior estimate of $7.50. Craig-Hallum noted the multiple sat modestly above Five Below's five-year average forward P/E of roughly 28x and peer averages near 23x, while remaining in line with the company's current fiscal 2026 multiple of 28.8x.

The firm said a premium valuation was justified given accelerating same-store sales and Five Below's industry-leading unit-level economics. While tariffs were cited as a source of near-term uncertainty, Craig-Hallum said higher sales volumes were likely to drive upside to EBIT margins in fiscal 2026 and beyond.

The firm added that valuation multiples could move above the five-year average, supported by the strongest same-store sales performance among peers.