Levi’s News: LEVI Stock Takes a Hit on Goldman Sachs Downgrade

Levi’s news for Wednesday about the company getting a downgrade has LEVI stock falling.

Levi's News: LEVI Stock Takes a Hit on Goldman Sachs Downgrade

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The downgrade for Levi’s (NYSE:LEVI) comes from Goldman Sachs analyst Alexandra Walvis. This has the analysts dropping the stock from its previous rating of “Neutral” to a new rating of “Sell.” This marks the first “Sell” rating for the company from Goldman Sachs.

The bad Levi’s news doesn’t just stop at a downgrade. Walvis also is also reducing her price target for the stock to $19 per share. That represents a roughly 9% decrease from the previous price target of $21 per share.

The lower price target for LEVI stock is actually below what it was trading for at close on Tuesday. LEVI stock was sitting at $19.80 when the markets closed. This has that price target sitting at about 4% lower than that. It’s worth noting that this new price target does still have LEVI above its IPO price of $17 per share in March.

The Goldman Sachs analyst gives a couple of reasons behind the bad Levi’s news. The first is that the wholesale sector in the U.S. is already facing tough times. The second is that the hype around LEVI stock isn’t justified based on its brand growth, reports Bloomberg.

Levi’s news has been rough lately after reporting an earnings miss earlier this month. That saw the company bringing in earnings per share of 7 cents. Unfortunately, that was below Wall Street’s earnings per share estimate of 8 cents for the period.

LEVI stock was down 5% as of noon Wednesday.

As of this writing, William White did not hold a position in any of the aforementioned securities.

Article printed from InvestorPlace Media, https://investorplace.com/2019/07/levis-news-hits-stock/.

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