Levi Strauss & Co (LEVI) shares tumbled nearly 12% in afternoon trading on Friday despite better-than-expected third-quarter results, with Wells Fargo noting that there were concerns around the company's near-term outlook, combined with the questions around the rate of spend or margins into 2026.

Wells Fargo has an 'Overweight' rating with a price target of $25, according to TheFly, while JPMorgan raised its price target on Levi Strauss to $33 from $23. JPMorgan noted that the company reported a "beat and raise" third quarter (Q3) but said that it views Levi's outlook as conservative.

Levi Strauss forecast fiscal 2025 adjusted earnings per share to be between $1.27 and $1.32, compared to its prior forecast of $1.25 to $1.30. 

Retail sentiment on Levi Strauss remained unchanged in the 'extremely bullish' territory compared to a day ago, with message volumes at 'extremely high' levels, according to data from Stocktwits.

UBS raised its price target on Levi Strauss to $32 from $28 and maintained a 'Buy' rating. The firm stated that Levi's focus on transforming into a global, multi-channel lifestyle brand for both men and women should continue to drive share gains over the long term.

“The total addressable market for denim is large and growing as consumer preferences continue to shift towards casualization,” CEO Michelle Gass said during a post-earnings call on Thursday.

Morgan Stanley, which raised its price target on Levi Strauss to $20 from $19, said a "fair" after-market valuation and 2026 earnings per share uncertainty are making it keep the“Equal Weight” rating.

Shares of Levi Strauss have gained 25% this year and jumped over 13% in the last 12 months.  

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