Analyst Christopher Nardone from Bank of America Securities reiterated a Hold rating on Levi Strauss & Co (LEVI – Research Report) and decreased the price target to $17.00 from $21.00.
Christopher Nardone has given his Hold rating due to a combination of factors affecting Levi Strauss & Co. Despite a strong start to the year with better-than-expected sales and margins, there is uncertainty surrounding future margins due to potential tariff impacts. The company reported a significant beat in its first-quarter earnings, but the evolving geopolitical situation and its potential effects on tariffs create a cautious outlook.
Additionally, while there has been no immediate sign of consumer weakness and March trends were stronger than February, the company has taken a conservative approach in its sales growth projections for the rest of the year. The uncertainty in the macroeconomic environment and the potential for incremental tariffs contribute to a more cautious margin outlook. Furthermore, while there are positive signs in the US wholesale market and growth potential in Europe and Asia, the overall uncertainty leads to a Hold rating as the company navigates these challenges.
In another report released on April 4, Citi also maintained a Hold rating on the stock with a $14.00 price target.
LEVI’s price has also changed moderately for the past six months – from $19.660 to $13.500, which is a -31.33% drop .