Levi Strauss (LEVI): Fresh Analyst Upgrades Spark New Valuation Focus Before Q3 Earnings

Levi Strauss (NYSE:LEVI) is drawing fresh investor interest after analysts cited its strong push into direct-to-consumer sales and growing demand for denim. Recent analyst upgrades come as the company’s Q3 earnings report approaches.

See our latest analysis for Levi Strauss.

Levi Strauss has been capturing attention with its strong execution on direct-to-consumer initiatives and expansion into new lifestyle segments. Shares recently hit fresh 52-week highs, supported by upbeat guidance revisions, director changes, and new leadership roles that are enhancing both its brand and operations. While 1-year total shareholder return has been positive and momentum appears to be building, steady fundamentals and management moves are helping Levi position for continued growth in a competitive space.

If Levi’s momentum sparks your curiosity, now’s the perfect chance to broaden your search and discover fast growing stocks with high insider ownership

With shares near 52-week highs and analysts raising their price targets, the key question is whether Levi Strauss remains undervalued or if the market has already factored in all of its future growth potential. Is there genuine upside for investors, or has the recent momentum been fully priced in?

Most Popular Narrative: Fairly Valued

The latest narrative sets Levi Strauss's fair value close to its last closing price, suggesting the market may already be accounting for much of the known growth and risks. Investors are observing whether the company can build on its recent surge or if the upside is now limited.

Ongoing robust growth in international markets, particularly Europe (up 15% with double-digit gains in France, UK, Italy, and Spain) and Latin America (up 18%), shows that Levi's is successfully capturing rising demand from an expanding global middle class and urbanization. This directly supports sustainable revenue expansion and reduced geographic risk.

Read the complete narrative.

Can the denim giant keep riding this global momentum? The analysts’ consensus depends on a handful of optimistic forecasts. The secret sauce behind their fair value? Unlock the key assumptions by reading the full narrative breakdown.

Result: Fair Value of $24.23 (ABOUT RIGHT)

Have a read of the narrative in full and understand what's behind the forecasts.

However, Levi Strauss’s overreliance on denim and exposure to global tariffs could quickly challenge its growth story if market conditions shift.

Find out about the key risks to this Levi Strauss narrative.

Another View: The Market Multiple Perspective

While the analyst fair value pins Levi Strauss near recent prices, a look at the company's price-to-earnings ratio paints a slightly different picture. Levi's ratio of 22.9x is well below its peer average of 46.1x, which suggests potential value compared to similar companies.

However, compared to the industry average of 21.3x and its fair ratio of 22.7x, Levi trades only slightly higher. This narrow gap indicates that valuation upside from a rerating may be limited unless growth meaningfully outpaces expectations. Should investors pursue the peer discount, or exercise caution as the fair ratio approaches?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Levi Strauss Narrative

If you see the story differently or want to dig into the numbers yourself, you can shape your own view in just a few minutes with Do it your way.

A great starting point for your Levi Strauss research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

Looking for more investment ideas?

Smart investors keep their eyes open for the next big opportunity. Make your next winning move by checking out these powerful stock ideas today. Missing out could mean leaving potential gains on the table.

• Unlock the power of consistent passive income and get a jump on top yielders by reviewing these 19 dividend stocks with yields > 3% delivering impressive returns above 3%.
• Spot emerging leaders disrupting industries with artificial intelligence and transform your strategy through these 24 AI penny stocks making waves in real-world applications.
• Capture unique growth stories before they break out by tracking these 3566 penny stocks with strong financials showing strong financials that set them apart in a crowded market.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com