Barclays has initiated coverage of Levi Strauss with an overweight rating and a $24 per share price target, suggesting a potential 36% upside from the recent closing price. Following this upgrade, Levi Strauss shares increased over 1%. Analyst Paul Kearney highlights several key opportunities for growth, including addressing share losses in men’s bottoms, optimizing operations and product assortment, and enhancing direct-to-consumer investments. He emphasizes that growth in the women’s segment will significantly drive future performance. Kearney anticipates that wholesale sales will normalize in the coming year, with streamlined operations potentially boosting productivity and margins.
Despite challenges like a less favorable margin environment due to inventory costs and tariffs, Kearney believes accelerating sales will be critical. Notably, Levi Strauss has shown consistent sales-to-inventory growth across the past four quarters, a trend Kearney expects to continue. Over the past year, Levi Strauss shares have climbed about 9%. Analysts’ opinions on the stock vary; LSEG data indicates that six out of thirteen analysts rate it as a buy or strong buy, while the remaining seven maintain a hold rating.
