UPDATE: Goldman Sachs Initiates Five Below at Neutral with $35 PT

Goldman Sachs initiated its coverage on Five Below FIVE with a Neutral rating and a price target of $35. Goldman Sachs noted, "FIVE's differentiated business model should power compelling runway as it grows from 215 stores to 2000 stores nationally. We expect 30%-35% annual EPS growth driven by 25% unit growth, mid-single-digit comp growth and EBIT margin expansion of 100-200 bp over next three years. This opportunity has not gone unnoticed by the market as the current valuation of 50X FY13E EPS suggests robust expectations." Five Below closed at $32.71 on Friday.