Levi Strauss & Co. (NYSE:LEVI)

Currently, the Street expects LEVI to post earnings of $0.27 per share in Q3, compared with $0.40 per share reported in the prior-year period. Meanwhile, analysts expect LEVI to post revenue of $1.54 billion in Q3, compared to $1.52 billion in the prior-year quarter.

Here’s What Analysts are Saying about LEVI Stock

Prior to the company’s earnings release, two analysts have rated the stock a Buy, and two have assigned a Hold rating to LEVI stock.

Among the bullish analysts, Robert Drbul from Guggenheim has revised his Q3 EPS estimate to $0.25, down from the previous estimate of $0.26. This adjustment is due to expected weakness in U.S. Wholesale, slower adjustments in distribution centers and warehouses related to fill rates and inventory levels, and limited progress in pricing initiatives.

Nevertheless, Drbul remains positive about LEVI’s direct-to-consumer (DTC) and international market prospects. He also expects the company to gain market share and achieve growth in line with or surpassing industry averages.

The analyst reaffirmed his Buy rating on LEVI stock on September 28 with a price target of $19 (implying 44% upside potential).

Another analyst, Oliver Chen of TD Cowen, initiated coverage on LEVI stock with a Buy rating and price target of $16. Chen believes LEVI is well-positioned to grow its DTC business and international presence. Moreover, the analyst believes the stock is reasonably valued.

Is LEVI Stock a Buy, According to Analysts?

Wall Street is cautiously optimistic about LEVI. The stock has a Moderate Buy consensus rating based on five Buys and four Hold ratings assigned in the past three months. The average LEVI stock price target of $16.67 implies 24.6% upside potential.