11 Best Mid-Cap Value Stocks to Buy According to Analysts

7. Levi Strauss & Co. (NYSE:LEVI)

Fwd. P/E: 13.4

Potential Upside: 30%

Number of Hedge Fund Holders: 31

Levi Strauss & Co. (NYSE:LEVI) is a leading global apparel company, best known for its dominance in the jeanswear market. The company designs and sells jeans, casual clothing, and related accessories for men, women, and children. Its products are available in over 120 countries through a mix of chain retailers, department stores, e-commerce platforms, and a global network of approximately 3,400 brand-dedicated stores and shop-in-shops. The company currently trades at slightly over 13 times its forward earnings as compared to its trailing P/E of 32.

Levi Strauss & Co. (NYSE:LEVI) is currently facing challenging market conditions, with topline growth slowing and profitability under pressure. In September 2024, management acknowledged difficulties in achieving its goal of reaching $9 billion to $10 billion in annual revenue by 2027, citing headwinds from prolonged inflationary pressures affecting its customers. As a result, the company announced a delay in meeting these targets. Additionally, management revealed that they were exploring strategic alternatives for the Dockers brand, including a potential sale.

Despite these challenges, the company delivered strong Q4 2024 results. However, its guidance was perceived as soft, with reported revenue expected to decline by 1%-2%. That said, organic revenue growth remained solid at 3.5%-4.5%.

Analyst reactions to the results were mixed. Alexandra Straton from Morgan Stanley maintained a Hold rating on the stock with a $17 price target, citing subdued revenue and earnings growth, along with lukewarm market sentiment, as reasons for her cautious stance. She expects the stock to trade within a narrow range until sales growth picks up.

More recently, an analyst from Guggenheim expressed optimism about the company’s long-term growth potential and management’s commitment to reaching the $10 billion revenue target. As a result, he reiterated his Buy rating and raised his price target on Levi Strauss & Co. (NYSE:LEVI) from $20 to $22.