VF Corp: Neutral Stance as Valuation Discounts Vans Turnaround and Limits Near-Term Upside

UBS analyst Jay Sole maintained a Hold rating on VF today and set a price target of $19.00.

Jay Sole has given his Hold rating due to a combination of factors that suggest limited near-term upside for VF’s shares. He expects the upcoming third-quarter results to align closely with consensus, with only modest improvement at Vans, and therefore does not foresee meaningful changes to earnings forecasts or the stock’s valuation multiples following the report. At the same time, the options market is already implying a relatively large potential move around earnings, which Sole views as consistent with current expectations and not a clear risk/reward skew in either direction.
Although market sentiment toward VF appears constructive—evidenced by elevated crowding scores, reduced short interest, a flatter options skew, and a forward P/E well above the company’s own historical average—the fundamental data from UBS Evidence Lab and industry sources are mixed across brands and regions. Sole modestly raises his price target to $19, using a slightly higher valuation multiple as he gains incremental confidence in management’s ability to revive Vans, and notes that this target is broadly in line with peer valuations and supported by his DCF work. Taken together, these elements support a Neutral (Hold) stance: the stock already discounts much of the anticipated improvement, leaving a balanced risk/reward profile rather than a compelling buy or sell opportunity.

In another report released yesterday, TipRanks – Google also reiterated a Hold rating on the stock with a $21.00 price target.