Levi Strauss price target lowered to $17 from $19 at Stifel

Stifel analyst Jim Duffy lowered the firm’s price target on Levi Strauss to $17 from $19 and keeps a Buy rating on the shares. Levi’s Q2 results were slightly better than estimates, but U.S. wholesale channel issues weighed on both the revenue and gross margin outlook and FY23 EPS guidance was cut 15% at the mid-point, notes the firm, which says exposure to lower income consumers in the domestic mass channel specifically “remains a pressure point.” The softer U.S. wholesale trends are “disappointing,” but the firm’s constructive thesis has centered on margin accretion from international growth and direct-to-consumer, where “trends remain more buoyant,” the analyst tells investors.