Street Calls of the Week
Investing.com - UBS raised its price target on Levi Strauss & Co. (NYSE:LEVI) to $32.00 from $28.00 on Friday, while maintaining a Buy rating on the stock.
The 14% increase in price target follows what UBS described as a "solid" third-quarter report from the denim maker, which strengthened the firm’s conviction in its Buy rating. According to InvestingPro data, LEVI maintains impressive gross profit margins of 61.1% and boasts a perfect Piotroski Score of 9, indicating strong financial health.
UBS believes Levi’s ongoing transformation from a traditional North American wholesale men’s denim business into a global, multi-channel lifestyle brand for both men and women will continue to fuel market share gains over the long term.
The investment bank expects continued strong results to increasingly convince the market that Levi’s transformation will allow it to consistently deliver mid-single-digit percentage revenue growth at healthy margins.
UBS noted that while tariffs represent a headwind for the company, it believes Levi Strauss is well positioned to mitigate these costs, and that the market will eventually view LEVI similarly to Ralph Lauren and Tapestry, resulting in a comparable high-quality price-to-earnings ratio.
In other recent news, Levi Strauss & Co. reported its financial results for the third quarter of 2025, delivering a performance that exceeded analysts’ expectations. The company achieved an adjusted diluted earnings per share (EPS) of $0.34, surpassing the forecasted $0.30. Additionally, Levi Strauss reported revenues of $1.54 billion, outpacing the anticipated $1.5 billion. Despite these strong financial figures, the stock experienced a slight decline in after-hours trading. These developments reflect the mixed reactions from investors as they assess the company’s earnings call and broader market conditions. The positive earnings and revenue figures highlight Levi Strauss’s ability to perform beyond market predictions. Such financial outcomes are crucial for investors, providing insight into the company’s current financial health. As the company navigates its future, these results remain a focal point for stakeholders and analysts alike.
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