UPDATE: Morgan Stanley Initiates Coverage On Five Below

In a report released Wednesday, Morgan Stanley analyst Vincent Sinisi initiated coverage on Five Below FIVE with an Equal-weight rating and a $41.00 price target.

Sinisi expects continued growth with core operations and unit expansion. Morgan Stanley's price target is given by its 2015 EPS estimate of $0.91 ($0.01 above consensus). Sinisi's 2015 estimate gives a P/E multiple of 34x, influencing the firms risk/reward positive skewness for Five Below.

Shares of Five Below are down less than one percent at $38.53.