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Investing.com - Stifel raised its price target on Levi Strauss & Co . (NYSE:LEVI) to $24.00 from $20.00 on Friday, while maintaining a Buy rating following the company’s second-quarter performance.
The firm cited "balanced strength and execution" that drove second-quarter upside, with revenue exceeding Stifel’s expectations by $85.6 million and adjusted earnings per share beating estimates by $0.09. The company’s strong execution is reflected in its recent performance, with the stock delivering a 14% return over the past six months.
Levi Strauss increased its fiscal year 2025 guidance despite potential tariff impacts, which Stifel attributed to the company’s "advantaged revenue and sourcing base diversification." The firm believes most tariff pressure can be offset in 2026.
Stifel noted confidence in the order book and continued direct-to-consumer strength, suggesting capacity for second-half 2025 upside. The firm views the company’s building fundamentals favorably and sees "assortment expansion and DTC strategies beginning to pay off."
The new $24 price target represents 16.0x price-to-earnings on Stifel’s calendar year 2026 adjusted EPS estimate of $1.50, and 9.9x enterprise value to EBITDA on their calendar year 2026 adjusted EBITDA estimate of $1,005 million.
In other recent news, Levi Strauss & Co. reported a strong second quarter for 2025, with earnings per share (EPS) of $0.22, surpassing the forecast of $0.13, marking a 69.23% earnings surprise. The company’s revenue also exceeded expectations, reaching $1.4 billion against a forecast of $1.37 billion. Following this performance, Levi Strauss raised its full-year organic net revenue growth guidance to 4.5-5.5% and increased its fiscal year 2025 earnings guidance to $1.25-1.30 per share. The company noted that potential tariff headwinds are expected to impact earnings by only $0.02-0.03 per share. Analyst firm Wells Fargo (NYSE:WFC) raised its price target on Levi Strauss to $25.00, maintaining an Overweight rating, while Citi increased its price target to $22.00, maintaining a Neutral rating. Levi Strauss reported revenue growth of 9% on a constant currency basis, driven by strong sales in Europe and the United States, despite a decline in Asian market sales. The company’s direct-to-consumer business now accounts for over 50% of total sales, with a record gross margin of 62.6%.
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