Bank of America Securities analyst Christopher Nardone reiterated a Buy rating on Levi Strauss & Co today and set a price target of $24.00.
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Christopher Nardone has given his Buy rating due to a combination of factors that highlight Levi Strauss & Co’s positive financial outlook. The company is in the early stages of an earnings per share (EPS) revision cycle, with expectations of moderate sales growth and margin expansion. Levi’s recent second-quarter results exceeded expectations, with adjusted EPS surpassing estimates due to higher sales and gross margins. Management has raised its fiscal 2025 EPS guidance, reflecting stronger sales, despite slightly lower gross margins due to tariffs.
Moreover, Levi has shown consecutive quarters of high single-digit organic sales growth, outperforming many of its peers in the apparel sector. The company has also adjusted its sales guidance upward, indicating confidence in continued growth. Despite the uncertainty surrounding tariffs, Levi is well-positioned due to its strong brand presence, international sales exposure, and diversified sourcing strategy. These factors, coupled with structural drivers like lower product costs and higher full-price selling, support a favorable outlook for the company’s gross margins.
In another report released yesterday, Wells Fargo also maintained a Buy rating on the stock with a $25.00 price target.