Levi Strauss Analyst Raises Forecast After Q4 Print, Notes Headwind From Denizen Exit
Portfolio Pulse from Priya Nigam
Levi Strauss & Co (NYSE:LEVI) shares fell in premarket trading after Q4 results. Despite softer revenues and job cuts, an earnings beat was reported due to higher gross margin expansion and a lower tax rate. Analyst Dana Telsey of Telsey Advisory Group maintained an Outperform rating and raised the price target from $16 to $18. The company faces headwinds from the Denizen exit and other factors but expects low single-digit revenue growth for fiscal 2024. All regions showed growth for the first time since 2Q22.
January 26, 2024 | 3:28 pm
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Levi Strauss reported a Q4 earnings beat with higher gross margin expansion and a lower tax rate. Analyst Dana Telsey maintained an Outperform rating and raised the price target from $16 to $18, despite headwinds from the Denizen exit and other factors.
The positive earnings beat and the analyst's maintained Outperform rating with an increased price target suggest a bullish outlook for LEVI. However, the premarket decline indicates mixed investor sentiment, potentially due to the announced job cuts and revenue headwinds. The short-term impact is likely positive due to the analyst's confidence and the brand's global growth.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 100