TD Cowen analyst John Kernan maintained a Hold rating on VF today and set a price target of $13.00.
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John Kernan has given his Hold rating due to a combination of factors impacting VF Corporation’s financial outlook. The stock experienced a significant fluctuation, opening with a 20% increase but closing at just 2.5%, influenced by market positioning and short interest. The company’s balance sheet and working capital metrics, coupled with low capital expenditures, create uncertainty around the improvement of free cash flow, which is expected to decrease significantly by FY27 compared to FY25.
While there are signs of transformation in brands like The North Face and Timberland, the stabilization of Vans remains a concern, with a notable decline in sales. Additionally, the impact of tariffs from Vietnam and Southeast Asia is expected to affect gross profit, although partial mitigation is planned for the future. Management’s guidance for the upcoming quarters suggests a slowdown in revenue decline, but Kernan remains cautious, projecting figures below consensus estimates. These factors contribute to the Hold rating as the path to financial recovery remains uncertain.
In another report released today, Telsey Advisory also maintained a Hold rating on the stock with a $14.00 price target.
Based on the recent corporate insider activity of 31 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of VFC in relation to earlier this year.