Mixed Outlook for VF Corporation: Challenges with Vans Offset by Strength in The North Face and Timberland

Analyst Tom Nikic from Needham maintained a Buy rating on VF (VFC – Research Report) and decreased the price target to $15.00 from $28.00.

Tom Nikic’s rating is based on a combination of factors that reflect both challenges and opportunities for VF Corporation. Despite the ongoing struggles with the Vans brand, which has seen a significant decline in revenue and is expected to remain under pressure, there is still a belief in a potential turnaround. The performance of other brands like The North Face and Timberland remains strong, providing a positive counterbalance to Vans’ difficulties.
Although the earnings forecasts for the upcoming fiscal years have been adjusted downward, indicating a cautious outlook, there is an expectation of improvement in earnings before interest and taxes (EBIT) for the full fiscal year. The revised price target reflects these mixed signals, yet the overall sentiment suggests that the stock could recover, justifying the Buy rating.

In another report released on May 12, Barclays also maintained a Buy rating on the stock with a $19.00 price target.