Levi Strauss & Co. (LEVI) PT Raised to $24 at Stifel on higher revenue and earnings estimates

Stifel analyst Jim Duffy raised the price target on Levi Strauss & Co. (NYSE: LEVI) to $24.00 (from $17.00) while maintaining a Buy rating.

The analyst commented: 'Solid Start to FY24, as Visibility to +MSD Revenue Growth in 2H Improves; TP to $24 - Jim Duffy - Levi’s posted $1,558mn revenue and $0.26 adj. EPS, topping Stifel estimates by $20mn/ $0.05. FY24 earnings outlook increased only modestly to $1.17-$1.27 (prior $1.15-$1.25), reflecting reaffirmed revenue outlook for +1-3% growth, and a slight increase in gross margin guidance (now +150bps y/y vs. prior +140-150bps y/y). With much of the year ahead, we view this approach as prudent, and expect continuation of underlying trends could support further upside as the year unfolds. Product diversification efforts are showing encouraging progress, and denim dresses and skirts (+triple-digits y/y) demonstrate capitalization on burgeoning trends. Project Fuel initiatives are tracking to the $100mn cost savings target in FY24, and greater potential in FY25. We are increasing revenue and earnings estimates modestly, and towards the higher end of the guidance range, and increase our target price to $24 reflecting 16x P/E on our FY25E adj. EPS estimate of $1.50; 11x EV/EBITDA.'

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