Levi Strauss Stock Tanking After Q3 Is Buying Opportunity, Says Analyst

Levi Strauss & Co (NYSE:LEVI) shares tanked in early trading on Friday, even after the company reported upbeat third-quarter earnings.

• LEVI is taking a hit from negative sentiment. Track the action here.

Here are some key analyst takeaways:

• JPMorgan analyst Matthew Boss reiterated an Overweight rating, while raising the price target from $23 to $33.
• BofA Securities analyst Christopher Nardone maintained a Buy rating and price target of $27.
• Telsey Advisory Group analyst Dana Telsey maintained an Outperform rating and price target of $27.
• Needham analyst Tom Nikic reaffirmed a Buy rating and price target of $28.

• Check out other analyst stock ratings.

 JPMorgan: Levi Strauss reported adjusted earnings of 34 cents per share, beating Street expectations of 31 cents per share, Boss said in a note. The beat was driven by higher-than-expected organic revenue growth of 7% year-on-year and gross margin expansion of 110 basis points (bps), he added.

The company's organic revenue growth rate "accelerated on a 2-year stacked basis to +10.9% growth led by strength across regions," the analyst wrote. Management raised the 2025 adjusted earnings guidance to $1.27-$1.32 per share, from its previous estimates of $1.25-$1.30 per share, he further stated.

BofA Securities: Levi Strauss' upbeat quarterly results were driven by better-than-expected sales, which were led by the Americas and Asia, Nardone said. Management raised their full-year organic sales guidance to 6%, from their prior projection of 4.5%-5.5%, he added.

"We think continued global share gains and a strong denim category will drive consistent MSD sales growth and margin expansion," the analyst further wrote.

Telsey Advisory Group: Levi Strauss reported solid quarterly results, with healthy topline growth and gross margin expansion, Telsey said. Total revenue grew 7% to $1.543 billion, beating the consensus of up 3.9% to $1.499 billion, she added.

Management raised their top- and bottom-line guidance for the full year for the second consecutive quarter, the analyst stated. "The guide now contemplates a 30% tariff on U.S. imports from China and a 20% rate for the rest of the world," she further wrote.

Needham: Levi Strauss reported strong results amid "solid brand heat and denim tailwinds," Nikic said. The company's guidance reflects a slowdown in organic growth from the 7% reported in the third quarter to 1% in the fourth quarter, he added.

Despite the guide down, "we think underlying demand trends remain very strong and management is simply being prudently conservative," the analyst wrote. He further stated that the sell-off in the stock is a "buying opportunity."

LEVI Price Action: Shares of Levi Strauss had declined by 11.94% to $21.61 at the time of publication on Friday.

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