According to Morgan Stanley, the outlook for Levi Strauss in the future is quite bleak. “Macro uncertainty + rising apparel inventories may limit positive EPS corrections,” analyst Kimberly Greenberger wrote in a note to clients on Thursday. “So while our constructive thesis and estimates are unchanged, we downgrade to EW.” FactSet data shows that the downgrade makes Morgan Stanley the only Wall Street firm that doesn’t rate Levi as a buyer. Markets are grappling with a tough economic situation as recession fears grow and the Federal Reserve continues its cycle of rate hikes. At the same time, retailers are grappling with persistently high levels of imports, which could affect garment prices, Greenberger writes. Combined, these uncertainties put the company’s full-year guidance at risk in the retail sector, while limiting visibility into the not-so-distant future, she said. “While we are comfortable with LEVI’s current inventory levels and have kept our fiscal year estimate unchanged for now (details below), we are concerned about inventory levels.” Abundance in the market could limit LEVI’s prospects for further earnings correction from here,” Greenberger wrote, adding that the stock is likely to remain “range-bound for some time.” Greenberger maintained the bank’s $19 price target on the stock, implying a 2% drop from Wednesday’s close. Shares of the clothing company are down more than 22% this year and are down 33% from a 52-week high. – CNBC’s Michael Bloom contributed reporting