Levi Strauss (LEVI) is transforming into a global, multi-channel lifestyle brand, a shift that should drive mid-single digit revenue growth and mid-teens margin growth over time, UBS Securities said in a note Thursday.

UBS analysts said they model a 13% five-year EPS compound annual growth rate, with more beat-and-raise quarters expected as the turnaround plays out.

"This will drive not only upward EPS revisions, but also a rerating which sends LEVI's current ~14x P/E higher," the note said.

Following its beat-and-raise Q2, the report said updated forecasts now also consider a stronger 2026 topline outlook given the company's momentum in US wholesale and Asia.

UBS kept its buy rating with a price target of $34.

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