Market Overview

Shares Of Five Below Drop Following Negative Report By Kerrisdale

52 Biggest Movers From Friday
44 Stocks Moving In Friday's Mid-Day Session

Kerrisdale Capital published a negative blog post on Five Below (NASDAQ: FIVE). Following the post from the known-bearish firm, shares of Five Below were trading down just over three percent.

The blog began, "We believe that Five Below is highly overvalued." However, above this was a disclaimer alerting readers that the firm is short on the company's shares.

The main reasons the firm listed to support the claim that Five Below is "highly overvalued" included:

  • High valuation multiples (3x LTM revenue and 25x LTM EBITDA).
  • Mediocre same-store sales growth.
  • Long-term margin pressure.
  • A highly competitive market segment (2,000+ Wal-Mart Express store expected to open over the next five years).

In terms of valuation the firm wrote, "Our DCF yields a valuation for FIVE of approximately $23 / share, well below the current price of $35."

Shares of Five Below are currently down less than one percent at $36.79.

Posted-In: KerrisdaleAnalyst Color News Retail Sales


Related Articles (FIVE)

View Comments and Join the Discussion!

Latest Ratings

AAPLWedbushInitiates Coverage On310.0
DHTJP MorganUpgrades0.0
DXCMGoldman SachsUpgrades125.0
ORLYJP MorganUpgrades398.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

Mid-Day Market Movers For Thursday, June 12, 2014

Twitter Shares Chirp Higher Following Analyst & Media Coverage Of COO Resignation