Levi Strauss & Co, the maker of Levi’s jeans, kicked off the IPO frenzy by going public and making investors a lot of money, but the stock is now too high to buy, CNBC’s Jim Cramer said Thursday.
Shares of the jean company, which was founded in antebellum America, rocketed more than 30 percent during the session after listing at $17, as much as $3 higher than its expected offering. The stock closed at $22.41 in its return to public markets after spending more than three decades as a private company.
The “Mad Money” host noted that it’s a high-quality brand, which includes Dockers and Denizen under its belt, and CEO Chip Bergh has turned the company around since taking over in 2011. But he warned that investors should not buy into the iconic name at just any price because there is no guarantee that Levi’s will keep delivering rapid earnings growth.
This is an apparel stock and it’s important to do security analysis, Cramer said.
“Levi’s has been doing a great job in a tough business, but at the end of the day, I hate to chase a stock that’s up big, and this one’s already up enormously after its first day of trading,” he said. “As much as I like Levi’s the business … Levi’s the stock is too rich for me at these levels.”
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