Levi Strauss stock maintains Buy rating at UBS following strong Q2 earnings

Published 11/07/2025, 14:46
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Investing.com - UBS maintained its Buy rating and $20.00 price target on Levi Strauss & Co . (NYSE:LEVI) following the company’s second-quarter earnings report that exceeded expectations.

The denim retailer posted a second-quarter earnings beat of 9 cents per share, driven by stronger-than-anticipated revenue growth and improved gross margin performance.

UBS described the quarterly results as "one of LEVI’s best quarters over the past few years," highlighting the company’s successful execution during the period.

The investment firm noted that Levi Strauss is making progress in its strategic transformation from a traditionally North American, wholesale, men’s denim business into a global, multi-channel lifestyle brand serving both men and women.

UBS believes this ongoing business transformation should position the company for strong long-term growth as it continues to diversify its product offerings and distribution channels.

In other recent news, Levi Strauss & Co. has reported a strong second-quarter performance, leading several investment firms to adjust their price targets for the company’s stock. Stifel raised its price target to $24, citing Levi’s revenue exceeding expectations by $85.6 million and adjusted earnings per share surpassing estimates by $0.09. Similarly, JPMorgan increased its price target to $23 following Levi’s adjusted earnings per share of $0.22, which beat consensus estimates and showed broad-based revenue growth. Wells Fargo (NYSE:WFC) also raised its target to $25, noting Levi’s 6% revenue growth and margin improvements. Citi, while maintaining a Neutral rating, increased its price target to $22, highlighting Levi’s 9% constant currency revenue growth and strong sales in Europe and the United States.

Levi Strauss has updated its fiscal year 2025 earnings guidance to $1.25-$1.30 per share, surpassing previous estimates and the consensus of $1.23. The company also raised its full-year revenue forecast to 4.5%-5.5% organic growth. Despite potential tariff impacts, Levi Strauss has maintained its EBIT margin guidance and expects modest revenue growth in the upcoming quarters. Analysts from Stifel and Citi suggest that Levi Strauss’s strategic shifts and strong execution may continue to drive growth, with Citi estimating earnings potentially reaching $1.32 per share. These recent developments reflect the company’s robust financial performance and strategic positioning in the market.

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