12:40 PM EDT, 04/04/2024 (MT Newswires) -- Levi Strauss' (LEVI) "better-than-expected" fiscal Q1 results and a stable full-year sales guidance led to a 7% stock rebound after declining Wednesday due to peer's disappointing print, Morgan Stanley said in a note Thursday.

The denim jeans manufacturer reported fiscal Q1 adjusted earnings late Wednesday of $0.26 per diluted share, higher than $0.21 consensus. Revenue for the quarter stood at $1.56 billion, compared with estimates of $1.55 billion.

The brokerage expects Levi's revenue growth in 2024 to be slightly above management's guidance of 1% to 3%, with operating expenses and gross margin growth aligning with expectations.

Morgan Stanley maintained its equal weight rating on Levi and increased the price target to $20.00 from $17.00.

Levi shares were up more than 16% in recent Thursday trading.

Price: 21.70, Change: +3.03, Percent Change: +16.26