TD Cowen analysts started coverage on Levi Strauss (NYSE:LEVI) with an Outperform rating and set a price target of $16 per share. As a result, shares gained nearly 3% intra-day today.

The analysts encouraged investors to embrace the potential for global growth as Levi, a renowned denim icon, undergoes a transformation. With its top-ranking brand recognition and market share, Levi's is well-positioned to expand its direct-to-consumer engagement, international presence, and diversify its product offerings beyond denim.

The analysts believe that Levi's is at the beginning of a promising trend in the denim industry, driven by new fits and styles catering to younger and fashion-forward consumers.

TD Cowen anticipates achievable long-term EPS growth of over 12%, supported by more than 6% annual revenue growth and consistent gross margin expansion.