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Five Below pops after Wall Street gives the discount retailer another green light

Five Below shares climbed over 4% Tuesday afternoon after Loop Capital bumped its rating on the stock from “hold” to “buy” and lifted its price target to $165 from $130 — about a 20% leap from current trading levels. It marks Loop Capital’s second upgrade for the chain this summer, after lifting its price target to $130 from $90 in June.

The upgrade comes on the heels of Five Below’s strong Q1 results in June as well as a fresh partnership with Uber Eats. Analysts at Loop Capital cited sharper merchandising, refreshed marketing, tighter inventory control, and pricing changes as core drivers, even as the broader retail space stays choppy.

It’s the latest sign of growing optimism around the retailer: UBS reiterated its “buy” rating on the stock in June and also lifted its price target to $160 from $110. In April, JPMorgan upgraded its outlook on the stock from “underweight” to “neutral.”

Five Below shares are up over 38% year to date.

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SpaceX gets a wave of bullish ratings from Wall Street analysts

SpaceX received more than a dozen positive analyst calls on Tuesday — including from major Wall Street banks — as they initiate coverage on Elon Musk’s space and AI company.

SpaceX went public on June 12 at a $2.2 trillion valuation, the largest debut in history. While the company hasn’t yet posted a profit, it seems to have convinced Wall Street that it will get there and grow its valuation on the way.

Of the at least 17 analysts that gave a rating on Tuesday, all but one gave it a “buy” or “outperform” rating. MoffettNathanson was "neutral."

The ratings come as SpaceX joined the Nasdaq 100 index, a benchmark tech-heavy basket of companies that underpins millions of portfolios. The inclusion adds built-in demand for the stock from index funds and ETFs.

Still, SpaceX fell more than 5% on Tuesday amid a broader sell-off, and is currently effectively flat from its opening price of $150 a share.

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