Key Takeaways
- Jefferies reduced Levi Strauss (LEVI) price target from $27 to $25 while maintaining its Buy recommendation.
- Stifel decreased its forecast from $28 to $27 due to revenue uncertainty, also preserving a Buy rating.
- LEVI stock currently trades at $19.70, reflecting a 0.25% daily decline.
- Q3 results expected in six days, with UBS projecting earnings per share of $0.36.
- A recent cybersecurity breach disclosed by the company involved unauthorized internal file access.
Shares of Levi Strauss & Co. (LEVI) are trading at $19.70, reflecting a modest 0.25% decline. Two prominent Wall Street firms have revised their price projections downward this week as the company prepares to release quarterly results.
Jefferies adjusted its forecast down to $25 from a previous $27. The investment firm continues to recommend the stock as a Buy.
Stifel followed suit with a downward revision from $28 to $27. Despite the adjustment, the firm retained its positive Buy stance on the denim maker.
The quarterly earnings announcement is scheduled for six days from now. Both investment houses have recalibrated their forecasts with that upcoming disclosure in focus.
Jefferies anticipates a respectable third quarter performance overall. The firm highlights the company’s robust gross profit margin of 61.72% as a positive indicator.
According to Jefferies, full-year profit projections could see a minor upward adjustment. However, revenue guidance is likely to remain unchanged due to persistent inflationary headwinds.
Factors Behind the Downward Revisions
Jefferies identified challenges in the European marketplace and potential softness among U.S. value-conscious shoppers. The firm’s proprietary U.S. sales data showed inconsistent signals.
Stifel’s rationale focuses on separate considerations. The firm modified its revenue and profit forecasts based on retail channel intelligence and cotton pricing dynamics expected to impact 2027 results.
Stifel’s earnings estimates remain above the Wall Street consensus for both 2026 and 2027. The firm’s margin analysis incorporates tariff mitigation strategies and strengthening direct-to-consumer profitability.
The firm views the denim fashion cycle, particularly wide leg silhouettes, as still mid-trajectory. It considers Levi Strauss favorably positioned given its dominant presence in this segment.
Feedback from retail partners has been predominantly encouraging, Stifel observed. However, proprietary data suggests otherwise, which the firm attributes to wider U.S. economic pressures and intensifying competition for discretionary spending.
Stock Valuation and Profit Forecasts
Levi Strauss shares currently trade at 12.5 times fiscal 2026 earnings estimates. This represents a discount compared to the lifestyle apparel sector median of 14.3 times calendar 2026 projections.
Stifel’s revised $27 objective implies 15.5 times the firm’s fiscal 2027 EPS estimate of $1.74. This contrasts with the consensus Street forecast of $1.71 for the equivalent timeframe.
UBS, by contrast, maintained both its Buy recommendation and $34 price objective. The firm anticipates third quarter earnings of $0.36 per share, matching consensus expectations.
UBS also forecasts an improved revenue trajectory that could elevate the company’s full fiscal 2026 EPS guidance. This represents a more optimistic perspective than the other two firms.
Jefferies also referenced the company’s appointment of a new chief financial officer. The firm interprets this personnel move as evidence of sustained commitment to international expansion.
The firm views fourth quarter performance as a critical benchmark for operating margin health. It anticipates revenue growth in the mid-single digit percentage range or better entering 2027.
In related developments, Levi Strauss acknowledged a cybersecurity incident earlier this month. The company reported that unauthorized parties gained access to internal documents using social engineering techniques.
Levi Strauss emphasized that customer information was not compromised in the security breach. External cybersecurity specialists have been engaged to conduct a comprehensive investigation.
The company’s board of directors also experienced a recent change. Robert Eckert stepped down upon reaching the mandatory retirement threshold, with the departure unrelated to any corporate disputes.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
