Levi Strauss & Co.’s (LEVI) stock rose more than 1% after the company known for pioneering blue jeans teased a new partnership with singing superstar Beyoncé.
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In a post on Instagram, San Francisco-based Levi Strauss posted an image of a woman wearing a cowboy hat and riding a horse, with the words “Introducing: A New Chapter.” The image is believed to be a reference to Beyoncé’s latest album called “Cowboy Carter.”
Celebrity Endorsements Drive Sales
The clothing retailer also tagged Beyoncé’s Instagram account in the post, fueling speculation that Levi Strauss is collaborating with the singer in hopes of attracting her loyal fanbase known as the “Beyhive.” Beyoncé’s Cowboy Carter album, released earlier this year, features a song entitled “LEVII’S JEANS.”
The potential partnership comes after Levi’s most recent financial results missed Wall Street’s targets, despite denim experiencing a revival on social media. The internet is awash with celebrities and influencers showing off blue jeans, as well as denim skirts and dresses.
Celebrity endorsements are frequently used to help revive the popularity of brands. Recent examples include American rapper Travis Scott and McDonald’s (MCD), and basketball star Shaquille O’Neal promoting Papa John’s (PZZA) pizza. So far this year, LEVI stock has risen 26% to trade at $20.43 per share.
Is LEVI Stock a Buy?
Levi Strauss’ stock currently has a consensus Moderate Buy rating among 10 Wall Street analysts. The rating is based on four BUY and six Hold recommendations made in the last three months. There are no Sell ratings on the stock. The average price target on LEVI stock of $23.11 implies 13.17% upside potential from where the shares currently trade.
