Levi Strauss's (LEVI) fiscal Q3 sales are likely to top its outlook, and the company could raise its full-year earnings forecast, BofA Securities said in a Wednesday note.

The company is scheduled to report Q3 earnings on Oct. 9.

Analysts polled by FactSet expect Levi Strauss to post adjusted earnings of $0.31 per share, compared with BofA's estimate of $0.32.

"We expect another strong sales beat ahead of management's 3Q outlook (guidance is 4-5% organic growth), with growth expected in both channels," analysts said, adding that they view management's guidance as conservative.

BofA said denim remains a "hot" category across brands and retailers, and a strong back-to-school season bodes well for the company's Q3 results and Q4 guidance.

The brokerage raised its price objective to $27 from $26 and maintained a buy rating.

Shares of Levi Strauss were up more than 2% in recent trading.

Price: 23.81, Change: +0.51, Percent Change: +2.19