Levi Strauss price target raised to $18 from $16 at Telsey Advisory

Telsey Advisory raised the firm’s price target on Levi Strauss to $18 from $16 and keeps an Outperform rating on the shares after the company reported Q4 results. Levi Strauss’ finish to FY23 was a “mixed bag,” with Q4 sales coming in a little light and expenses a bit higher than anticipated, which was offset by stronger gross margin leverage and a tax benefit that helped deliver a 1c EPS beat, the analyst tells investors. All three regions returned to growth and, while near-term macro challenges remain, Levi announced a two-year initiative to help deliver profitable growth, the firm adds. Overall, Telsey believes Levi is well-positioned, with a strong and growing DTC business with a stabilizing wholesale business that should be able to deliver growth against easier compares in the future.