On Monday, TD Cowen maintained a Hold rating on VF Corp (NYSE:VFC), with a consistent price target of $16.00. The stance comes amid investor and analyst uncertainty regarding the company's sales and margin expectations leading up to FY26. According to TD Cowen, there seems to be a lack of adjustment in the sell-side consensus to account for the divestiture of Supreme, a previously owned brand.
The firm's analysis indicates that their own published estimates for VF Corp's performance are significantly lower than the consensus for the period leading into FY26. Despite these concerns, TD Cowen acknowledges the efforts of Bracken Darrell, who has systematically tackled major issues related to the management team and capital structure.
However, TD Cowen's field research suggests that VF Corp is experiencing sales weakness, which is a critical factor in their evaluation. This insight into the company's sales performance reflects the cautious outlook held by TD Cowen, despite the strategic moves made by VF Corp's leadership. The $16.00 price target suggests that the firm is not anticipating significant movement in the stock's value in the near future.
In other recent news, VF Corp has been a topic of interest among various analysts. Williams Trading maintains a Sell rating on VF Corp shares due to concerns about the company's debt, which exceeds $3.5 billion. Citi, on the other hand, maintains a Buy rating on VF Corp, despite projections of second-quarter sales and earnings per share falling below market consensus.
JPMorgan maintains a Neutral stance, forecasting that VF Corp's earnings per share for fiscal years 2025 through 2027 will fall short of consensus estimates. Stifel has raised its stock price target for VF Corp to $25, reinstating a Buy rating due to anticipated upside potential. However, Wells Fargo downgraded VF Corp from Equal Weight to Underweight, citing concerns about the company's current valuation.
In terms of recent developments, VF Corp has completed the sale of its Supreme brand for $1.5 billion, a strategic move that enabled the company to pay down debt and focus on revitalizing its core brands. The company also announced additional cost savings of $50 million in Q1 of fiscal year 2025 and maintained its Q2 outlook, forecasting a modest revenue decline, a slight increase in gross margin, and a minor rise in SG&A expenses.
InvestingPro Insights
Recent data from InvestingPro adds depth to TD Cowen's analysis of VF Corp (NYSE:VFC). The company's market cap stands at $6.51 billion, reflecting its current position in the market. VF Corp's revenue for the last twelve months as of Q1 2025 was $10.28 billion, with a concerning revenue growth decline of -10.16% over the same period. This aligns with TD Cowen's observations about sales weakness.
InvestingPro Tips highlight that VF Corp has maintained dividend payments for 54 consecutive years, demonstrating a commitment to shareholder returns despite challenges. However, the company was not profitable over the last twelve months, with a negative P/E ratio of -5.57, underscoring the concerns raised in the article about sales and margin expectations.
Interestingly, while TD Cowen maintains a Hold rating with a $16 price target, InvestingPro data shows a Fair Value (Analyst Targets) of $18.07, suggesting some analysts see potential upside. The stock's volatility is evident in its 33.93% price total return over the last six months, contrasting with a -14.51% return in the past month.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for VF Corp, providing a deeper understanding of the company's financial health and market position.
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