© Reuters No Surprises From Levi (LEVI), But Growth Ahead Says Citi
Levi Strauss (NYSE:) held its investor day event on Wednesday, maintaining its earnings per share guidance of $1.50 to $1.56 for the full year.
Following the event, Citi analyst Paul Lejuez released a note saying there were no big surprises, but good growth is ahead.
The investor event was held in New York City, featuring presentations from members of the company’s senior management, including CEO Chip Bergh and CFO Harmit Singh.
Lejuez, who has a $27 price target on Levi shares, said the management had a positive tone, and, along with reiterating full-year guidance, the company raised its long-term growth outlook.
“We continue to believe Levi’s is well-positioned in the current environment driven by brand strength, it benefits from the trend toward ‘going out,’ and also has a new denim cycle to help drive demand,” the analyst wrote.
Meanwhile, Morgan Stanley’s Kimberly Greenberger told investors that Levi’s financial target building blocks are less clear.
“We like the DTC mix shift narrative, which should drive OM expansion over time. But this is predicated on sales acceleration above industry forecasts, peers, & historical levels, leaving new financial target achievability less clear. Our model is under review,” she stated.
The analyst currently has an Overweight rating and a $33 price target on Levi’s.
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