Robinhood shares gain on Q2 beat, as user and crypto growth accelerate
On Thursday, Citi analysts, led by Paul Lejuez, increased the price target on VF Corp (NYSE:VFC) shares to $30 from the previous target of $26, while keeping a Buy rating on the stock. Currently trading at $25.56, VF Corp has seen 6 analysts revise their earnings estimates upward for the upcoming period, according to InvestingPro data. The adjustment follows VF Corp’s release of their third-quarter results, which outperformed expectations. However, the company’s revenue guidance for the fourth quarter was less optimistic than anticipated.
Despite the third quarter benefiting from factors that may not recur in the fourth quarter, such as a modest wholesale timing shift and colder weather, Citi analysts suggest that management’s forecast might be on the conservative side. They predict a 2% decrease in fourth-quarter sales, compared to the company’s guidance of a 4-6% decline. The stock has shown strong momentum, posting a 19.11% gain year-to-date and an impressive 51.68% return over the past year. The analysts underscore that overall trends are heading in a positive direction, with expectations for continued sequential improvement in the Vans brand.
The upcoming investor event on March 6 is anticipated to further bolster confidence in the Vans brand’s recovery. Sun Choe, the new President of Vans, is set to discuss her strategy for revitalizing the brand, which Citi analysts believe will be a significant confidence booster.
Citi analysts also point to VF Corp’s long-term financial goals, noting that the company’s target of a 10% operating margin by the fiscal year 2028 is within reach. They even see potential for an upside if VF Corp can achieve sales growth, a factor they feel is not currently reflected in the stock’s price. InvestingPro analysis suggests the stock is currently undervalued, with analyst targets ranging from $15 to $39. Discover more insights about VF Corp and access comprehensive analysis of 1,400+ US stocks through InvestingPro’s detailed research reports.
In other recent news, VF Corp reported notable third quarter fiscal 2025 results, with adjusted earnings per share of $0.62, significantly surpassing the analyst estimate of $0.33. The company’s revenue for the quarter ending December 28, 2024, was $2.83 billion, exceeding the consensus estimate of $2.75 billion. These are recent developments that investors should be aware of. Additionally, VF Corp increased its full-year free cash flow guidance to $440 million, up from a previous forecast of $425 million. However, the company anticipates a decline in revenue of 4% to 6% year-over-year for the fourth quarter, or 2% to 4% in constant currency terms. VF Corp’s Board of Directors also declared a quarterly dividend of $0.09 per share. Moreover, Stifel analysts raised the price target for VF Corp shares to $35.00, maintaining a Buy rating on the stock. Stifel’s analysts expressed increased confidence in the company’s margins and potential opportunities, predicting that VF Corp’s shares could reflect earnings per share of over $2.00 within the next 12 months.
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