Stifel analyst Peter McGoldrick downgraded VF Corp. (VFC) to Hold from Buy with a price target of $16, up from $15. The risk-reward on the stock is now “in balance” after a 12.5% one-month return, and the $600M sale of Dickies is a “strong outcome”, representing 15-times enterprise value to expected forward EBITDA multiple, even though the company’s Vans business still continues to seek a new base and a normalized growth rate, the analyst tells investors in a research note. A leg higher in shares would require confidence in accelerating fundamentals, which may still be a year out, the firm added.
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Read More on VFC:
- Lack of Transparency and Uncertainty Drive Sell Rating for VF Corporation Amid Dickies Sale
- V.F. Corporation Faces Investor Backlash Over Vans Decline
- Strategic Asset Sale and Financial Maneuvers Justify Buy Rating for VF Corporation
- VF Corp. to sell Dickies to Bluestar Alliance for $600M in cash
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