Levi Strauss' (LEVI) improved guidance for fiscal 2025 could prove conservative given the momentum of the business, BofA Securities said in a note Friday.

"We think LEVI is still in the early innings of a positive EPS revision cycle and see a combination of MSD sales growth and margin expansion ahead," BofA analyst Christopher Nardone said. MSD refers to mid-single digits.

Late Thursday, the company posted better-than-expected Q2 results and raised its outlook for fiscal 2025.

Nardone said he was "encouraged" by the two straight quarters of high-single digits organic sales growth.

"We view this as a healthy, above growth rate that is trending ahead of most apparel peers," the analyst said.

BofA raised its price target to $24 from $21 while keeping its buy rating on the stock.

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