Levi's ($LEVI) is Taking off
2025-07-13Change from report: +6.5%1M: -1.9%3M: -1.0%
Levi Strauss & Co. (NYSE: LEVI) appears attractive at a $25 price target, supported by its ongoing shift to a higher-margin, DTC-led model. Q2 FY 2025 was an inflection point: gross margin reached a record 62.6 %, and EPS of $0.22 beat the $0.13 consensus, powered by DTC revenue rising above 50 % of total sales. Management also authorized an additional $100 million share-repurchase program. Trading at 24.6 Γ forward P/E with 28 % ROE, the valuation looks reasonable given structurally expanding margins. Key risks: sensitivity to consumer discretionary spending and the inherent cyclicality of fashion trends.
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