Wells Fargo analyst Edward Kelly says that while Five Below's quarter should be good, he is growing increasingly concerned about 2018 earnings guidance given the high sell-side bar of mid-30% year over year growth. Underlying store growth should be strong and tax reform is expected to add about 20% to earnings on a gross basis, but the company is lapping last year's comp and margin windfall from spinners, has a tough sales comparison even after this issue, should have exposure to higher freight, and will likely reinvest some of its tax benefit, he contends. Nonetheless, Kelly would use any weakness as a buying opportunity. The analyst reiterates an Outperform rating and $74 price target on the shares.

Get caught up quickly on the top news and calls moving stocks with these five Top Five lists.  1... To see the rest of the story go to thefly.com. See Story Here

Get caught up quickly on the top news and calls moving stocks with these five Top Five lists.  1... To see the rest of the story go to thefly.com. See Story Here