The outlook is murky for Levi Strauss going forward, according to Morgan Stanley. “Macro uncertainty + elevated apparel inventory could limit positive EPS revisions,” wrote analyst Kimberly Greenberger in a note to clients Thursday. “So while our constructive thesis & estimates are unchanged, we downgrade to EW.” The downgrade makes Morgan Stanley the only Wall Street firm to not rate Levi as a buy, FactSet data shows. Markets are grappling with a tricky economic situation as fears of a recession mount and the Federal Reserve continues its rate-hiking cycle. At the same time, retailers are grappling with continuously high import levels, which could affect apparel prices, Greenberger wrote. Combined, these uncertainties put the company’s full-year guidance at risk in the retail space, while also limiting visibility in the not too distant future, she said. “While we are comfortable with LEVI’s current inventory levels & leave our FY estimates unchanged for now (more below), we worry the abundance of inventory across the market could limit LEVI’s prospects for further upward earnings revisions from here,” Greenberger wrote, adding that the stock could remain “range-bound for some time.” Greenberger maintained the bank’s $19 price target on the stock, which implies a 2% downside from Wednesday’s close. Shares of the clothing company have fallen more than 22% this year and are down 33% from their 52-week high. — CNBC’s Michael Bloom contributed reporting