Analyst Christopher Nardone of Bank of America Securities reiterated a Buy rating on Levi Strauss & Co, boosting the price target to $27.00.
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Christopher Nardone has given his Buy rating due to a combination of factors including the strong performance of the denim category and Levi Strauss & Co’s growing global brand presence. The company has demonstrated positive earnings per share (EPS) momentum, which is expected to continue, driven by sustainable and consistent results. Meetings with management have reinforced confidence in Levi’s ability to outperform expectations.
Additionally, Levi’s organic sales growth has exceeded guidance, and the company has shown an ability to beat EPS expectations. Despite conservative guidance, there is potential for further EPS beats and an increase in full-year EPS projections. The increase in price objective to $27 reflects higher estimates and the potential for Levi to narrow the valuation gap with its high-quality peers, supported by favorable factors such as FX tailwinds and diminishing headwinds in key markets.
In another report released on September 26, Barclays also maintained a Buy rating on the stock with a $26.00 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.