01:35 PM EDT, 06/07/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

Our 12-month target of $139, down $57, is 26x our FY 25 (Jan.) EPS view of $5.34 (down $0.79; FY 26's cut $0.82 to $6.50), a discount to the one-year forward P/E mean of 30.4x. FQ1 (May) adj-EPS of $0.60 (-11% Y/Y) missed by $0.03 on revenue of $812M (+11.8% Y/Y), 3% below consensus. A comparable sales decline of 2.8% was comprised of transactions -2.8% and ticket +0.5%. Needs-based products outperformed expectations by posting positive results, offset by discretionary weakness. Gross margin advance of 20 bps to 32.5%, largely due to falling freight, was offset by a 150-bp SG&A advance, mostly driven by deleveraging and a marketing shift to Q1. The FY 25 sales guide is down to $3.8B-$3.9B from $4.0-$4.1B and EPS to $4.90-$5.37 from $5.71-$6.22. FIVE is focused on driving sales and maximizing margins. A stretched consumer could challenge FIVE in achieving its goals. We think value seeking behaviors could restrict demand to seasonal products or back-to-school events, possibly offsetting observed weakness.