Levi Strauss & Co.: Solid Execution, DTC-Led Growth, and Capital Returns Support Buy Rating and $26 Target

Levi Strauss & Co, the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Oliver Chen from TD Cowen maintained a Buy rating on the stock and has a $26.00 price target.

Oliver Chen has given his Buy rating due to a combination of factors tied to Levi Strauss & Co.’s solid operating performance and strategic progress. The company slightly exceeded earnings expectations and delivered modest revenue growth despite margin pressure from foreign exchange and higher costs, while its direct-to-consumer segment, now roughly half of total sales, continues to post strong, double-digit gains. Growth was broad-based across key geographies, and management’s focus on expanding the assortment beyond core denim—into tops, dresses, skirts, and other non-denim bottoms—supports a larger addressable market over time. Valuation is also supportive, with shares trading near their historical earnings multiple, and the balance sheet and free cash flow profile remain healthy, reflected in low leverage and an attractive cash yield.

Chen also highlights shareholder-friendly capital allocation and potential upside to the medium-term outlook. Levi’s announced a sizable accelerated share repurchase program, signaling confidence in its intrinsic value and cash generation. Although FY26 earnings guidance is slightly below consensus, the company’s history of consistently beating profit expectations suggests management may be taking a conservative stance. Additional earnings drivers include ongoing efficiency initiatives, particularly in inventory and SKU management, as well as opportunities to mitigate tariffs and harness artificial intelligence to improve both operations and the customer experience. Taken together, these factors underpin Chen’s view that the current share price offers a favorable risk-reward profile, justifying his Buy rating and $26 price target.

Chen covers the Consumer Cyclical sector, focusing on stocks such as Compagnie Financiere Richemont SA, LuxExperience, and Tapestry. According to TipRanks, Chen has an average return of 5.9% and a 52.61% success rate on recommended stocks.

In another report released today, Needham also reiterated a Buy rating on the stock with a $28.00 price target.