UPDATE: Credit Suisse Upgrades Five Below on Heightened Investor Appetite

In a report published Monday, Credit Suisse analyst Christian Buss upgraded Five Below, Inc. FIVE from Neutral to Outperform and raised the price target from $46.00 to $52.00.

The report noted, “We are increasingly compelled by the combination of dollar store attributes (square footage opportunity, broad demographic appeal) and specialty retailer disciplines (ability to capture periods of heightened demand, compelling merchandise margin, attractive unit economics.) We expect sustained 25%-plus revenue growth and 30% EPS growth, suggesting an upside opportunity for 3,000 stores, $6B in revenue and $10 in EPS. We also see heightened investor appetite for growth consumer concepts, providing support for an elevated multiple. We now view this as a core growth holding.”

The report further asserted:

-"Target For 2,000 Stores Is Well Above That of Youth Retail Peers”

-"Merchandising Team Has Ability to Capture Rents in Periods of Heightened Demand”

-"Valuation Premium For Consumer Growth Has Risen”

Shares of Five Below are trading up 3 percent on the heels of this upgrade.

Five Below closed on Friday at $42.72.