Here are the biggest analyst calls of the day: Levi, Wells Fargo, Nokia, Five Below & moreApril 15, 2019
Telsey said the company is on solid footing financially and has show a record of growth over the last 7 years.
“We are initiating coverage of LEVI with an Outperform rating and price target of $28. Following its privatization in 1985, we believe Levi Strauss & Co. (LS&Co.) has re-emerged into the public market in a position of strength for several reasons. First, the company has a proven track record of growth over the past seven years. In F2018, net revenues reach $5.57B representing a CAGR of 2.3%; operating income grew at a CAGR of 6.9%, resulting in 250 bps of margin expansion to 9.6% (unadjusted); and net income increased by a CAGR of 11.3%. Second, its financial position is solid, having reduced its leverage ratio from 3.8x in F2012 to 1.5x in the last fiscal year and over the past five years, cumulative FCF (before dividends) amounted to $1.1B for an average of $230MM per year. Third, the company’s global positioning is attractive with Levi’s having the highest brand awareness in the denim bottoms category. For perspective, Levi men’s has the market leadership position in 7 of 9 countries tracked, while women’s is the market share leader in 5 of the 9 countries. Fourth, the business model has become increasingly diversified over the past three years through distorted growth in Tops and the Women’s business as well as DTC and International expansion. And fifth, LS&Co.’s growth path has been, and should continue to be, driven by a bench of deep talent architected and led by President & CEO Charles (Chip) Bergh, who joined the company in September 2011 following a 28-year career at The Procter & Gamble Company.”
Source of this (above) article: https://www.cnbc.com/2019/04/15/calls-of-the-day-levi-wells-fargo-nokia-five-below-more.html