FIVE Looks Like A Steal

Five Below $FIVE ( ▲ 0.6% ) is back in favor at Bank of America $BAC ( ▼ 0.8% ). The firm just issued a rare double-upgrade, bumping it up from Underperform to Buy.

Analyst Ronald Ohmes also raised his price target to $233 from $158, citing growing confidence in leadership and execution.

The stock has already rallied sharply over the past year, but Bank of America believes additional upside remains as operational changes take hold.

Ohmes pointed to a revamped management team as a key catalyst.

New CEO Winnie Park, along with recently appointed finance and merchandising leaders, is refocusing the brand on kids and Millennial moms rather than teens.

The bank expects this shift to support a return to a higher valuation multiple as results improve.

Five Below has also moved toward a more merchant-led organization, refreshing its product pipeline and emphasizing clearer price architecture.

Bank of America highlighted a better assortment, expanded offerings above $5, and improved store execution driven by higher labor investment.

Enhanced seasonal merchandise and deeper licensing partnerships are also seen as traffic drivers.

Store growth has slowed to about 9%, down from 15%, which Ohmes says should improve site selection and execution.

Combined with stepped-up marketing, the firm sees a longer runway for same-store sales and earnings momentum.