Analyst Christopher Nardone from Bank of America Securities reiterated a Buy rating on Levi Strauss & Co and keeping the price target at $27.00.
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Christopher Nardone has given his Buy rating due to a combination of factors including Levi Strauss & Co.’s consistent performance in surpassing earnings expectations and its strategic positioning in the global denim market. The company reported a third-quarter adjusted EPS that exceeded both Bank of America’s and consensus estimates, driven by robust sales in the Americas and Asia and a stronger gross margin, which more than compensated for higher SG&A expenses.
Moreover, management’s upward revision of its fiscal 2025 organic sales and EPS guidance reflects confidence in the company’s growth trajectory, despite a conservative outlook for the fourth quarter. The potential for margin improvement through better markdowns and favorable foreign exchange rates, along with Levi’s ability to gain market share and expand its wholesale distribution, supports the expectation of mid-single-digit sales growth over the medium term. These factors contribute to the positive outlook and justify the Buy rating with a price objective of $27.
Nardone covers the Consumer Cyclical sector, focusing on stocks such as Levi Strauss & Co, Deckers Outdoor, and Ralph Lauren. According to TipRanks, Nardone has an average return of 16.3% and a 62.50% success rate on recommended stocks.
In another report released today, Needham also maintained a Buy rating on the stock with a $28.00 price target.