UPDATE: Sterne Agee Upgrades Five Below to Buy, Raises PT on Great Long-Term Potential

In a report published Thursday, Sterne Agee analyst Charles Grom upgraded the rating on

(NASDAQ:

) from Neutral to Buy, and raised the price target from $44.00 to $56.00. In the report, Sterne Agee noted, “We're upgrading FIVE to Buy and raising our EPS estimates/PT to $56 (from $44). While not necessarily a call on NT trends, FIVE can play both offense (SSS/door growth/GPM levers) and defense (value, <$5 focus) with shades of both COST/DLTR. Valuation has been an obstacle for many, but over a multi-year period FIVE has the potential to more than double its EPS... few retailers can make that claim.” Five Below closed on Wednesday at $46.60.