Tom Nikic, an analyst from Needham, maintained the Buy rating on Levi Strauss & Co. The associated price target remains the same with $28.00.
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Tom Nikic has given his Buy rating due to a combination of factors that highlight Levi Strauss & Co’s strong performance and potential for future growth. Despite the company’s Q4 guidance indicating a slowdown in organic growth and a decrease in gross margin, Nikic believes that the underlying demand trends for Levi’s products remain robust. This suggests that the management’s conservative outlook is a prudent approach rather than a reflection of weakening fundamentals.
Furthermore, Levi Strauss & Co exceeded expectations in the recent quarter with organic revenue growth of 7%, surpassing the guidance range of 4%-5%, and an EPS of $0.34, which was above the anticipated $0.28-$0.30 range. The upward revision of the FY25 guidance to a 6% organic top-line growth further supports the positive outlook. Nikic views any potential sell-off as a buying opportunity, indicating confidence in the company’s long-term prospects.
In another report released today, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $28.00 price target.
Based on the recent corporate insider activity of 93 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of LEVI in relation to earlier this year.