Levi Strauss stock price target raised to $28 from $20 at UBS on brand transformation

Investing.com - UBS raised its price target on Levi Strauss & Co . (NYSE:LEVI) to $28.00 from $20.00 on Friday, while maintaining a Buy rating on the denim maker’s stock.

The investment bank cited Levi’s ongoing transformation into a global, multi-channel lifestyle brand for both men and women, moving beyond its traditional focus on North American wholesale men’s denim business.

UBS noted that Levi’s solid second-quarter results demonstrate that the company’s strategic actions are beginning to translate into financial benefits, increasing the firm’s conviction in its Buy rating.

The bank expects Levi Strauss to deliver approximately 12% earnings per share compound annual growth rate over the next five years (FY24-FY29E), and forecasts continued mid-single-digit percentage revenue growth at healthy margins.

While tariffs remain a headwind for the sector, UBS believes Levi is better positioned than most competitors to withstand this challenge.

In other recent news, Levi Strauss & Co. reported strong second-quarter earnings, surpassing analyst expectations with earnings per share of $0.22, compared to the anticipated $0.11. The company also experienced a 6.4% year-over-year revenue growth, outstripping projections of 1%. Levi Strauss has raised its fiscal year 2025 guidance for adjusted earnings per share to between $1.25 and $1.30, exceeding previous estimates and the Street consensus. Additionally, TD Cowen, UBS, Stifel, and JPMorgan have all maintained their positive ratings on Levi Strauss, with price targets raised to $22, $20, $24, and $23, respectively, citing strong execution and promising revenue growth. Levi Strauss has also priced €475 million of senior notes due 2030, with plans to use the proceeds to redeem its 2027 notes. This move is part of Levi Strauss’s strategic financial management efforts. Analysts from UBS and Stifel highlighted the company’s transformation into a global lifestyle brand and its shift toward higher-value products as key factors for long-term growth. These developments reflect Levi Strauss’s robust performance and strategic positioning in the market.

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