Levi Strauss & Co.: A deal on high quality denim; Reiterate Buy

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Levi Strauss & Co.: A deal on high quality denim; Reiterate Buy

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Levi Strauss & Co.

A deal on high quality denim; Reiterate Buy

Reiterate Rating: BUY | PO: 27.00 USD | Price: 22.95 USD

Still early innings of EPS and valuation upside 11 June 2026

We reiterate our Buy; at 14x 27E P/E, we see a compelling opportunity to own a brand Equity

still in early stages of a transition to higher-quality, consistent growth. Exiting lower-

quality businesses and lower-tier wholesale doors has removed distractions from a Kendall Toscano Research Analyst

strong core brand moving forward. We think more consistent sales growth and stronger BofAS

flow-through will be rewarded with P/E expansion. Our $27 PO is based on 17x 27E P/E. +1kendall.toscano@bofa.com646 855 1704

Durable outlook for MSD%+ sales growth LorraineResearch AnalystHutchinson, CFA

We see continued sales growth at or above LEVI’s MSD% algorithm supported by BofASlorraine.hutchinson@bofa.com

strength in core denim bottoms (64% of sales) amidst a healthy global denim backdrop Trevor Tompkins

(with tailwinds from ongoing casualization of wardrobes and silhouette shifts). At the Research Analyst

BofAS

same time, growth in underpenetrated categories (esp. tops and women’s) continues to trevor.tompkins@bofa.com

outpace total company as LEVI broadens into a more complete head-to-toe lifestyle

offering (an initiative we view in early stages, but which represents 15x TAM expansion).

Increasing commitment to flow-through Stock Data

Years of investment in DTC, stores, and international have enabled more consistent sales Price 22.95 USD

growth. We now expect management to harvest the benefits of those investments and Price Objective 27.00 USD