11:06 AM EDT, 07/16/2025 (MT Newswires) -- Five Below ( FIVE ) has room to take up prices on its goods, manage its margins and still provide 'extreme value' for its consumers, UBS analysts wrote in a Tuesday note.

UBS analysts say the latest evaluation of the company's pricing shows a nearly 15% increase in prices on a subset of its products, reflecting the tariffs that were in place as of early June.

The analysts note that the data shows the company's best-selling stock-keeping units' prices rose 8% relative to last year, and that these price hikes are likely to have been manageable for the retailer's customers.

Comp trends have remained steady at Five Below ( FIVE ), and this momentum is likely to persist into the second half of the year, UBS said. They also add that the stock is still trading at a discount to its historical valuation.

UBS retained a 12-month price target of $160 and a buy rating on the stock.

Price: 133.87, Change: +1.78, Percent Change: +1.35