Five Below, the value retailer, has more items geared towards consumers in middle school through college, according to BAML.
"This included more room and technology products in the front of the store, as well as many back to school items," the analysts wrote.
The unique products offered at Five Below, paired with their low prices, will continue to drive store traffic for the chain, according to the analysts. They have a price objective of $150 for Five Below, and expect consistent low-to-mid single digit comp growth and 20% square footage growth on average on the year.
The biggest risk to Five Below's growth going forward is further China tariff increases, the analysts wrote. In addition, the chain could struggle if it has to raise its low prices or is unable to keep up with ever-shifting consumer trends.
Analysts also note that Five Below has very limited ecommerce potential, something that's increasingly important for all retailers that compete with Amazon.