Levi Strauss is a big company that makes clothes. They will tell us how much money they made in the last three months on April 3rd. A person who knows a lot about companies thinks Levi Strauss did not make as much money as before, but they also think they made more money for each item they sold and their costs went down. This person still thinks Levi Strauss is a good company to invest in because they have a strong online business and their other sales are getting better. Read from source...
- The analyst's rating is based on an outperform assumption, which may not be justified by the facts or data presented in the article. It could also reflect the analyst's personal preference or agenda.
- The analyst's revenue and EPS estimates are significantly lower than the previous year, but no explanation or reasoning is provided for this decline. It could indicate a lack of confidence in the company's performance or a pessimistic outlook.
- The article mentions a new two-year initiative to deliver profitable growth, but does not provide any details or specifics on how it will achieve this goal. It seems like a vague and unsubstantiated claim that does not add credibility to the company's strategy or vision.
Positive
Reasoning: The article mentions several factors that indicate a positive sentiment towards Levi Strauss, such as:
1. Analyst reiterates Outperform rating and raises the price target to $22 from $18.
2. Gross margin expansion of 150 bps year over year.
3. Stabilizing wholesale business that can deliver growth against easier compares going forward.
4. Higher sales and cost savings from its Project FUEL initiative.
1. Buy Levi Strauss & Co with a price target of $25 per share within the next 12 months. The stock is undervalued based on its strong brand recognition, growing direct-to-consumer (DTC) business, and cost savings initiatives from Project FUEL.