Five Below downgraded by Bank of America on Trump tariff threat after U.S. election

With Donald Trump reclaiming the White House , Bank of America thinks his threat of steep tariffs could hurt Five Below . The bank downgraded the discount retailer to underperform from neutral on Wednesday and slashed its price target to $75 per share from $98. BofA’s new forecast implies for nearly 20% downside for the stock. President-elect Trump campaigned on the prospect of tariffs on Chinese imports, and BofA analyst Melanie Nuñez thinks that Five Below’s outsized exposure to China could serve as a material headwind moving forward. FIVE YTD mountain Five Below stock. “We do not think FIVE has the pricing power to mitigate hefty tariffs as the value proposition is not resonating with consumers, and the company is in already in the process of reprioritizing lower price point items,” Nuñez said. Five Below stock has pulled back more than 56% in 2024. “Under a Trump administration, we expect a rapid prioritization of trade realignment and broad-based tariffs (60% on China, 10% on others has been proposed) to take effect post-January, potentially within a month following inauguration,” the analyst added.