Analyst John Kernan from TD Cowen maintained a Hold rating on VF and decreased the price target to $15.00 from $16.00.
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John Kernan has given his Hold rating due to a combination of factors affecting VF’s financial outlook. The company faces a complex model update, with consensus estimates appearing overly optimistic, particularly for the forward year. Uncertainty surrounding the performance of the Vans brand and challenging comparisons for the Outdoor Segment, including The North Face and Timberland, contribute to a cautious outlook. Consequently, Kernan has adjusted the price target to $15, reflecting lower sales and earnings projections into FY28.
Despite a recent earnings beat driven by lower expenses, the guidance for the third quarter is less optimistic, with revenue and adjusted EBIT projections falling below current consensus. This reflects ongoing challenges with the Vans brand and tariff-related headwinds, with mitigation efforts not expected to take full effect until the fourth quarter. Additionally, the consensus expectations for FY27 seem high given the uncertainties around consumer response to price inflation and the dynamics within the Vans brand, leading to a conservative stance on VF’s stock.
In another report released yesterday, Piper Sandler also maintained a Hold rating on the stock with a $14.00 price target.