Selected stock price target news of the day - April 8th, 2025

By: Matthew Otto

Levi Strauss Reports Q1 2025 Results, Driven by Revenue Growth and Margin Expansion

Levi Strauss reported financial results for the first quarter ended March 2, 2025. Net revenues from continuing operations totaled $1.53 billion, up 3% on a reported basis and 9% on an organic basis. While this was just shy of the $1.54 billion consensus estimate, total revenue would have exceeded expectations had the $67 million in Dockers® sales—now reclassified under discontinued operations—been included.

The Levi’s® brand grew 8% globally on an organic basis, with performance in the Americas where reported revenues rose 6% and organic revenues were up 11%. Direct-to-consumer (DTC) sales increased 9% on a reported basis and 12% organically, with DTC comprising 52% of total revenue. Gross margin improved 330 basis points to 62.1%, and adjusted EBIT margin expanded 400 basis points to 13.4%.

Levi reported adjusted diluted EPS of $0.38, surpassing analyst expectations by $0.10 and representing a 52% year-over-year increase. Net income from continuing operations reached $140 million, reversing a $10 million loss from the prior year. Adjusted net income was $150 million, up 49% year-over-year.

Operating income rose across all regions, including a 28% increase in the Americas and a 19% gain in Asia. SG&A expenses were $749 million, slightly down from the prior year, while inventories rose 7%. Levi reaffirmed its full-year 2025 guidance, forecasting organic net revenue growth of 3.5% to 4.5% and adjusted diluted EPS in the range of $1.20 to $1.25.

Analysts Adjust Ratings and Targets Following Q1 Beat

JP Morgan analyst Matthew Boss upgraded from Neutral to Overweight yet trimmed the price target from $19 to $17.
Telsey Advisory Group analyst Dana Telsey maintained an Outperform rating but lowered her price target from $23 to $19.
Stifel analyst Jim Duffy kept his Buy rating, however, reduced the price target from $25 to $20.

Which Analyst has the best track record to show on LEVI?

Analyst Alex Straton (MORGAN STANLEY) currently has the highest performing score on LEVI with4/4 (100%) price target fulfillment ratio. His price targets carry an average of $-1.71 (-9.14%) potential downside. Levi Strauss stock price reaches these price targets on average within 14 days.

Dave & Buster’s Misses Q4 Estimates as Revenue and Earnings Decline; Strategic Reset Underway

Dave & Buster’s Entertainment reported fourth quarter fiscal 2024 earnings per share (EPS) of $0.69 on an adjusted basis, missing the consensus estimate of $0.72 by $0.03. Revenue for the quarter came in at $534.5 million, below the $549.05 million analyst forecast and down 10.8% year-over-year, reflecting the absence of a 14th week that contributed $39.5 million in Q4 2023.

Comparable store sales declined 9.4%. Net income was $9.3 million, or $0.24 per diluted share, down from $36.2 million, or $0.88 per share in the prior-year quarter. Adjusted EBITDA fell 16.2% to $127.2 million, representing 23.8% of revenue.

For the full fiscal year, revenue decreased 3.3% to $2.1 billion and comparable store sales dropped 7.2%. Net income declined to $58.3 million, or $1.46 per diluted share, compared to $126.9 million, or $2.88 per share in fiscal 2023. Full-year adjusted EBITDA was $506.2 million, or 23.7% of revenue, an 8.9% decrease from the previous year.

Despite the financial challenges, Dave & Buster’s continued executing on key initiatives, opening 14 new stores in fiscal 2024 and completing 44 store remodels since the program began in 2023. Dave & Buster repurchased $172.0 million in shares last year, representing 12.4% of shares outstanding, and has repurchased an additional $23.9 million in fiscal 2025 to date. It also completed a $111.4 million sale-leaseback transaction involving five stores, ending the fourth quarter with $510.4 million in liquidity and a net total leverage ratio of 2.8x.

Looking ahead, Dave & Buster’s expects capital expenditures under $220 million, approximately $20 million in pre-opening costs, and $130 to $140 million in cash interest expense for fiscal 2025, which ends February 3, 2026.

Analysts Maintain Neutral Stance as Price Targets Move Lower

Piper Sandler analyst Nicole Miller Regan maintained a Neutral rating and lowered the price target from $33 to $22.
Benchmark analyst Mike Hickey reiterated a Hold rating.
Raymond James analyst Brian Vaccaro reiterated a Market Perform rating.
Loop Capital analyst Alton Stump cut the price target to $35.

Which Analyst has the best track record to show on PLAY?

Analyst Jake Bartlett (TRUIST) currently has the highest performing score on PLAY with 37/52 (71.15%) price target fulfillment ratio. His price targets carry an average of $2.51 (13.57%) potential upside. Dave & Buster’s Entertainment stock price reaches these price targets on average within 332 days.

Rhythm Pharmaceuticals Reports Breakthrough Results for Setmelanotide in Acquired Hypothalamic Obesity

Rhythm Pharmaceuticals has announced results from its Phase 3 TRANSCEND trial of setmelanotide, a medication for acquired hypothalamic obesity. This rare form of obesity is caused by damage to the hypothalamus, often due to brain tumors or injuries.

The trial involved 120 participants, with 81 receiving setmelanotide and 39 on placebo. After 52 weeks, the patients on setmelanotide saw a 16.5% reduction in body mass index (BMI), compared to a 3.3% increase for the placebo group, which is a difference of nearly 20%. Notably, 80% of patients on setmelanotide achieved at least a 5% reduction in BMI, which is a key indicator of meaningful weight loss. In the subgroup analysis, adults (n=49) experienced a 19.2% greater reduction in BMI, and children (n=71) saw a 20.2% reduction compared to placebo.

Acquired hypothalamic obesity affects an estimated 5,000 to 10,000 people in the U.S., 3,500 to 10,000 in the EU, and 5,000 to 8,000 in Japan. Setmelanotide showed improvements in hunger scores as well, with a 1.4-point reduction in daily hunger ratings compared to placebo. Setmelanotide was generally well tolerated, with side effects like nausea, headache, and skin changes being the most common. Rhythm Pharmaceuticals is preparing to submit the drug for approval to both the U.S. FDA and European Medicines Agency in late 2025.

Analyst Price Target Adjustments Following Phase 3 Trial Results

HC Wainwright & Co. analyst Raghuram Selvaraju maintained a Buy rating and raised the price target from $70 to $80.
Canaccord Genuity analyst Whitney Ijem maintained a Buy rating and increased the price target from $81 to $92.
Needham analyst Joseph Stringer reiterated a Buy rating and the price target at $66.
Oppenheimer analyst Leland Gershell reiterated an Outperform rating with a price target of $76.00.

Which Analyst has the best track record to show on RYTM?

Analyst Jeffrey Hung (MORGAN STANLEY) currently has the highest performing score on RYTM with 8/10 (80%) price target fulfillment ratio. His price targets carry an average of $20.36 (39.43%) potential upside. Rhythm Pharmaceuticals stock price reaches these price targets on average within 164 days.