Investing.com -- Wells Fargo downgraded Levi Strauss to Equal Weight from Overweight while maintaining its $25 price target, saying the apparel maker's strong share-price rally and earnings outperformance have largely been reflected in its valuation, leaving a more balanced risk-reward profile. However, Wells Fargo said recent results raised fresh questions about margins and earnings flow-through, particularly ahead of Chief Financial Officer Harmit Singh's planned retirement in November. The brokerage said second-quarter revenue exceeded expectations but margins showed no upside, third-quarter operating margin guidance fell short of Wall Street estimates, and fourth-quarter margin targets appear ambitious. The analysts said Levi's fourth-quarter plan assumes operating margin expansion of 150 to 200 basis points, driven by seasonal volume, lower advertising spending, distribution centre efficiencies and easing tariff pressure. Related articlesWells Fargo cuts Levi Strauss to Equal Weight after rally, flags limited upsideJPMorgan upgrades International Paper as linerboard pricing cycle gains momentumFerrovial posts revenue growth in first half of 2026