Levi Strauss & Co. (LEVI) PT Lowered to $20 at Stifel

Stifel analyst Jim Duffy lowered the price target on Levi Strauss & Co. (NYSE: LEVI) to $20.00 (from $25.00) while maintaining a Buy rating.

The analyst commented, “Organic revenue accelerated to +8.6% y/y vs. 8.2% y/y in 4Q and $0.38 adj. EPS beat our $0.27 estimate, driven by execution to the brand-building strategy. Underlying progress is overshadowed by the threatening impact of reciprocal tariffs, not embedded in reaffirmed guidance. We note that globally diversified revenue and supply chain (U.S. sources from 20 different countries) represent structural advantages in offsetting tariff impacts relative to peers. Levi’s isn’t immune to cost shocks or consumer slowdown: for sensitivity, we estimate tariffs could represent a -HSD% hit to CY26E earnings power assuming no degradation in consumer demand; and could represent -MT% hit to CY26E earnings power assuming a -MSD% impact to quantity demanded. Mindful of risks, we consider valuation in the context of downside scenarios. Our $20 TP represents 17.4x P/E on CY26E inflationary scenario of $1.15, and 27.6x on our recessionary scenario of $0.72.”

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