UPDATE: Goldman Sachs Upgrades Levi Strauss & Co. (LEVI) to Buy

December 10, 2020 5:24 AM EST
Get Alerts LEVI Hot Sheet
Price: $26.61 -1.22%

Rating Summary:
    10 Buy, 0 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 18 | Down: 12 | New: 23
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(Updated - December 10, 2020 5:34 AM EST)

(updating comment)

Goldman Sachs analyst Alexandria Walvis upgraded Levi Strauss & Co. (NYSE: LEVI) from Sell to Buy with a price target of $23.00 (from $11.00).

The analyst comments "Our cautious view had been predicated on headwinds within the US wholesale channel, stagnant margin expansion at both the gross and operating level with channel shift weighing on margins, and fading growth in select lines of business (e.g. Signature and Denizen). LEVI has delivered on several initiatives since the emergence of the COVID-19 pandemic (such as discretionary cost savings), and importantly the company has seen an acceleration in growth in its ecommerce business (e.g. DTC ecommerce grew 52% in the most recent quarter) which is now profitable. As we look ahead, we see an attractive risk/reward as LEVI shifts sales to the DTC channel and continues to diversify its US wholesale business to higher-growth partners, driving stronger sales, margins, and returns."

For an analyst ratings summary and ratings history on Levi Strauss & Co. click here. For more ratings news on Levi Strauss & Co. click here.

Shares of Levi Strauss & Co. closed at $20.55 yesterday.


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