In a report released today, Jay Sole from UBS reiterated a Buy rating on Levi Strauss & Co, with a price target of $32.00.
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Jay Sole has given his Buy rating due to a combination of factors that highlight Levi Strauss & Co’s ongoing transformation and strong financial performance. The company is evolving from a North American, wholesale, men’s denim business into a global, multi-channel lifestyle brand for both men and women. This strategic shift is expected to drive long-term market share gains and consistent revenue growth at healthy margins, similar to other high-quality brands like Ralph Lauren and Tapestry.
Notably, Levi’s recent third-quarter report showed a 7% year-over-year revenue growth, surpassing market expectations. Key areas such as direct-to-consumer, international markets, women’s apparel, and tops have all shown significant growth. Despite some anticipated challenges in the fourth quarter, including tariff impacts and a tough comparison with the previous year’s extended fiscal week, the company’s underlying trends remain strong. Jay Sole believes that Levi’s ability to mitigate these challenges and its promising growth trajectory justify the Buy rating and the increased price target.
In another report released today, Needham also maintained a Buy rating on the stock with a $28.00 price target.
Based on the recent corporate insider activity of 93 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of LEVI in relation to earlier this year.