- Aprile 13, 2022
- Posted by: Oliver
- Categoria: Economics, Finance & accounting
San Francisco, CA-based apparel major Levi Strauss has been catering to the lifestyle needs of customers since 1853. Presently, the company has roughly 2,800 company-operated stores worldwide.
The stock has declined almost 24% so far this year, much worse than the S&P 500’s decline of 6.4%. However, the fall can be attributed to wider market concerns that have burnt a hole in consumers’ pockets.
Meanwhile, Levi Strauss’ solid quarterly results lend credence to the fact that the company has strong fundamentals. LEVI reported quarterly net revenues of $1.6 billion, up 22% year-over-year. Further, the figure surpassed the consensus estimate of $1.54 billion. Its EPS for the quarter stood at $0.46, up 35.3% from the same quarter last year, topping the consensus estimate of $0.41 per share.
On April 7, UBS analyst Jay Sole reiterated a Buy rating on the stock. The analyst, however, lowered the price target from $37 to $34, which implies upside potential of 81% from current levels.
According to the analyst, even though the macroeconomic headwinds in the near future can hurt the company’s prospects in the short term, its brand value, market-leading position and global franchise give it a strong footing. Moreover, the stock is fairly valued at current levels.
Consensus among analysts is a Strong Buy based on 10 unanimous Buys. LEVI’s average price forecast of $30.90 implies upside potential of 64.5% from current levels. Shares have declined 29% over the past year.
