Goldman Sachs Raises Five Below Price Target, Sees Room for Valuation Expansion

Goldman Sachs increased its price target on Five Below (NASDAQ:FIVE) to $135 from $122 while maintaining a Buy rating, citing improving brand perception, resilient performance, and the potential for further multiple expansion.

Despite the retailer’s notable tariff exposure to China—a key risk compared to peers—Goldman believes those concerns are already reflected in the current valuation. The stock trades at a price-to-earnings multiple of 25.7x, in line with its three-year average and below its five-year historical multiple, suggesting room for upside if operational trends remain strong.

Analysts pointed to positive signals from recent consumer sentiment data via HundredX, which shows improved brand perception year-to-date. This aligns with Five Below's refreshed merchandising strategies that Goldman believes are already beginning to enhance margins and drive stronger top-line performance.

Based on robust trends observed quarter-to-date, the firm raised its second-quarter EPS estimate to $0.59 from $0.54 and nudged its full-year EPS forecast for 2025 to $4.73. Goldman maintains confidence in the company’s ability to outperform in the coming quarters, particularly as execution improves and growth initiatives take hold.