Raymond James gave a rating on shares of Levi's for the first time and advised buying immediately
Raymond James initiated analyst coverage on 172-year-old jeans maker Levi's with a buy recommendation (Outperform rating) and a target price of $26 per share, SeekingAlpha writes. This implies a potential upside of about 24% to the closing price of the stock on December 23.
Levi's shares were growing by about 0.6% on the pre-market on December 24. The main trades a day earlier ended, on the contrary, with a decrease of 1.2%. Since the beginning of 2025, the securities have added 21% in price.
What will ensure Levi's growth
According to analyst Rick Patel, Levi's has growth opportunities in a number of areas at once: in direct sales (without intermediaries), in international expansion, primarily in Asia, as well as in the women's segment. This will allow the company to expect profit growth of at least "high single digits" (i.e., about 7-9%) and revenue growth of "mid-single digit percent" (about 4-6%), Raymond James estimates.
Although Levi's faces the same duty-related risks as others in the sector - including imports from Bangladesh, Cambodia, Vietnam, Turkey, Pakistan and Mexico, with only the brand's premium line being produced in the U.S. - Patel believes Levi's has enough factors to improve gross margins. He estimates that these positive developments will more than offset the impact of duties in fiscal 2026.
What are other analysts saying?
Wall Street is almost unanimously advising to buy Levi's stock: it has 12 Buy ratings and two Overweight ratings versus only two Hold recommendations, MarketWatch shows. The average target price of $27.21 implies a price target of about 30% upside.
This article was AI-translated and verified by a human editor
