TLDR
- Jefferies cut its Levi Strauss (LEVI) price target to $25 from $27, keeping a Buy rating.
- Stifel also lowered its target, to $27 from $28, citing revenue concerns, while keeping a Buy rating too.
- Levi Strauss stock trades at $19.70, down 0.25% on the day.
- Earnings are due in six days, with UBS forecasting Q3 EPS of $0.36.
- The company recently disclosed a cybersecurity incident involving unauthorized file access.
Levi Strauss & Co. (LEVI) stock sits at $19.70 today, down 0.25%. Two major analyst firms trimmed their price targets this week ahead of the company’s upcoming earnings report.
Jefferies lowered its target to $25 from $27. The firm kept its Buy rating in place.
Stifel made a similar move, cutting its target to $27 from $28. It also maintained a Buy rating despite the reduction.
Earnings are due in six days. Both firms are adjusting their numbers with that date in mind.
Jefferies expects a solid third quarter overall. The firm points to a strong gross profit margin of 61.72% as a supporting factor.
Full-year profit guidance could move modestly higher, according to Jefferies. The revenue outlook, though, is largely expected to stay the same given ongoing inflation pressure.
What’s Driving the Target Cuts
Jefferies flagged a tough European market and a possibly weaker U.S. value consumer. The firm’s alternative data on U.S. sales came back mixed.
Stifel’s reasoning centers on different factors. The firm adjusted its revenue and earnings estimates to account for channel checks and cotton costs that will flow through in 2027.
Stifel still has earnings projections above the Wall Street consensus for both 2026 and 2027. Its margin outlook factors in tariff cushioning and improving direct-to-consumer economics.
The firm sees the denim trend, including wide leg styles, as still in its middle stages. It believes Levi Strauss is positioned well given its position in that category.
Retailer feedback has been largely positive, Stifel noted. Alternative data tells a different story, which the firm links to broader U.S. economic conditions and competition for consumer attention.
Valuation and Earnings Expectations
Levi Strauss stock trades at 12.5 times price-to-earnings on fiscal 2026 estimates. That’s below the lifestyle apparel median of 14.3 times on calendar 2026 estimates.
Stifel’s new $27 target works out to 15.5 times its fiscal 2027 earnings estimate of $1.74. That compares to a Street estimate of $1.71 for the same period.
UBS, meanwhile, kept its Buy rating and $34 price target. The firm expects Q3 earnings per share of $0.36, in line with consensus.
UBS also expects a stronger revenue outlook that could lift the company’s full fiscal 2026 EPS guidance. That would mark a more upbeat read than the other two firms.
Jefferies also mentioned a new chief financial officer hire at the company. It sees the move as a sign of continued focus on global growth.
The firm expects fourth quarter results to be a key test for operating margin. It’s looking for revenue growth in the mid-single digits or higher heading into 2027.
In separate news, Levi Strauss confirmed a cybersecurity incident this month. The company said unauthorized access to internal files occurred through social engineering tactics.
Levi Strauss said no consumer data was involved in the breach. Third-party cybersecurity experts have been brought in to investigate further.
The company’s board also saw a departure recently. Robert Eckert retired after reaching the mandatory retirement age, with no ties to any internal disagreement.
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