VF (VFC – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Lorraine Hutchinson from Bank of America Securities maintained a Sell rating on the stock and has a $18.00 price target.
Lorraine Hutchinson’s rating is based on several factors impacting VF’s current and future performance. The company is committed to sustainability and long-term brand growth, but no specific timeline for achieving this growth has been provided. Despite efforts to revamp talent and brand strategies, Hutchinson believes it will take time for these changes to significantly impact the company’s fundamentals, leading to a continued Underperform rating.
Additionally, specific brands like Vans and The North Face have ambitious plans, such as improving the women’s business and doubling the apparel segment, respectively. However, these goals lack clear timeframes, and the challenges faced by Vans, including the need for new hit products and recovering from store exits, suggest a prolonged turnaround period. The high net debt to equity ratio and the current stock price exceeding the price objective further contribute to the Sell rating, indicating potential overvaluation and financial risk.