Street Calls of the Week
Investing.com - Stifel reiterated its Buy rating and $27.00 price target on Levi Strauss & Co. (NYSE:LEVI) following the company’s third-quarter earnings beat.
The denim retailer exceeded expectations with $46 million in revenue above forecasts and adjusted earnings per share coming in $0.04 higher than anticipated. The results showed 7% organic top-line growth and 110 basis points year-over-year gross margin expansion, contributing to the company’s impressive 61.5% gross profit margin and 8.6% revenue growth over the last twelve months.
Stifel highlighted Levi’s structurally improving mix shift toward higher-value products and higher-average unit retail direct-to-consumer business. The company’s e-commerce segment performed particularly well, growing 16% year-over-year on an organic basis.
Despite the strong third-quarter performance, Levi’s fourth-quarter adjusted EPS guidance of $0.36-$0.38 fell short of market expectations. Stifel believes this guidance is conservative and sets up the potential for another earnings beat, noting positive quarter-to-date trends. InvestingPro analysis shows the stock trading near its 52-week high of $24.82, with 14 additional exclusive ProTips available to subscribers.
Stifel introduced fiscal year 2027 estimates for Levi Strauss, projecting 5.8% year-over-year reported revenue growth and adjusted EPS of $1.70, compared to the Street’s estimate of $1.62. The firm’s $27 price target reflects a 15.9x multiple on its FY27 adjusted EPS forecast. For deeper insights into LEVI’s valuation and growth prospects, access the comprehensive Pro Research Report, available exclusively on InvestingPro.
In other recent news, Levi Strauss & Co. reported its financial results for the third quarter of 2025, surpassing earnings expectations. The company achieved an adjusted diluted EPS of $0.34, exceeding the forecasted $0.30, and also surpassed revenue predictions with $1.54 billion against the expected $1.5 billion. These results highlight the company’s strong performance in the quarter. Additionally, JPMorgan raised its price target for Levi Strauss to $33.00 from $23.00, maintaining an Overweight rating. This adjustment reflects Levi’s expansion as a denim lifestyle brand and its growing demand among younger consumers. UBS also increased its price target for the company to $32.00 from $28.00, maintaining a Buy rating. UBS cited a solid third-quarter report as the basis for its increased confidence in the stock. These recent developments indicate strong momentum for Levi Strauss in the market.
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