Sam Poser, an analyst from Williams Trading, reiterated the Sell rating on VF. The associated price target was raised to $10.00.
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Sam Poser has given his Sell rating due to a combination of factors that raise concerns about VF’s financial strategy and future performance. Despite a slight increase in price target and better-than-expected revenue guidance for the second quarter of 2026, there are significant issues with the company’s financial health. The company’s free cash flow was negative in the first quarter of 2026, which casts doubt on its ability to meet its full-year guidance of positive free cash flow.
Additionally, VF’s decision to terminate its existing revolver early and switch to an asset-based revolver raises questions about the company’s financial flexibility and the potential risk of covenant breaches. The company also faces challenges in managing its debt, as it needs to address a significant term loan due in March 2026 while its net debt has increased. Furthermore, there are uncertainties about how VF plans to achieve its ambitious margin targets by 2028, given the current financial pressures and increased expenses.
In another report released today, Exane BNP Paribas also downgraded the stock to a Sell with a $10.00 price target.