VF, the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Sam Poser from Williams Trading maintained a Sell rating on the stock and has a $10.00 price target.
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Sam Poser has given his Sell rating due to a combination of factors surrounding VF Corporation’s recent business decisions and lack of transparency. The sale of the Dickies brand to Blue Star Alliance for $600 million is intended to address a significant term loan due in 2026, yet the lack of detailed financial information about Dickies’ profitability raises concerns about the accuracy of future financial estimates.
Poser is particularly troubled by VF’s ongoing lack of transparency, which is evident in their decision not to disclose detailed revenue and earnings contributions from Dickies. Despite management’s claims that the sale will positively impact growth rates, the absence of comprehensive financial data and the decision not to provide pro forma financial information or file necessary regulatory disclosures contribute to a lack of confidence in the company’s future performance. This opacity and the uncertainty it creates are central to Poser’s Sell recommendation.