Needham cuts VF Corp stock target to $15, maintains buy

On Wednesday, Needham analysts adjusted their outlook on VF Corp (NYSE:VFC) shares, significantly reducing the price target to $15 from the previous $28, while still maintaining a Buy rating on the stock. Currently trading at $12.77, InvestingPro data shows VFC has experienced high price volatility, with the stock down 32% year-to-date despite showing strong returns over the last month. The revision follows VF Corp’s fourth-quarter performance, which saw an unexpected downturn in its Vans brand, with revenues falling 20% on a constant currency basis.

VF Corp’s quarter report showed that, despite hopes for a Vans brand recovery, the label’s revenues sharply declined, leading analysts to anticipate continued negative performance in the coming quarters. Although The North Face (TNF) and Timberland brands are performing well, the uncertainty surrounding Vans has prompted a more cautious stance on the company’s stock. According to InvestingPro, VF Corp maintains strong fundamentals with a 52.6% gross profit margin and has maintained dividend payments for 55 consecutive years, demonstrating long-term stability despite current challenges.

The company’s financial results for the fourth quarter of 2025 revealed a 3% decline in constant currency revenue and a loss of $0.13 per share, aligning with market expectations. Looking ahead to the first quarter, VF Corp expects revenue to decrease by 3-5%. Nonetheless, the company projects an increase in EBIT for the full fiscal year.

Needham’s revised earnings per share (EPS) forecasts for VF Corp now stand at $0.98 for fiscal year 2026 and $1.27 for fiscal year 2027, a decrease from the previous estimates of $1.09 and $1.42, respectively. The lowered price target reflects the challenges facing Vans and the broader implications for VF Corp’s financial health.

As VF Corp navigates this period of uncertainty, the lowered price target and EPS forecasts indicate a more tempered expectation for the company’s near-term performance, despite the maintained Buy rating which suggests a belief in the company’s long-term turnaround potential. InvestingPro analysis indicates the stock is currently undervalued, with analyst targets ranging from $9 to $40. For deeper insights into VF Corp’s valuation and 8 additional ProTips, explore the comprehensive Pro Research Report available on InvestingPro.

In other recent news, VF Corporation revealed its fourth-quarter financial results for 2025, reporting a 3% decline in revenue year-over-year to $2.1 billion. The company slightly exceeded earnings per share (EPS) expectations with a reported adjusted EPS of -$0.13, compared to the anticipated -$0.14. Despite these challenges, VF Corporation improved its gross margin by 560 basis points to 53.4% and reported free cash flow of $313 million. Looking forward, VF anticipates a revenue decline of 3-5% for the first quarter of fiscal year 2026. The company expects an operating loss between $110 million and $125 million, which is greater than the Street’s estimate of a $76 million loss. Additionally, JPMorgan has adjusted its price target for VF Corp., lowering it from $18.00 to $15.00, while maintaining a neutral rating. This adjustment follows VF Corp.’s guidance, which projects a decrease in reported revenues and a first-quarter EPS loss of approximately $0.27. Despite the hurdles, VF Corp. continues its global commercial reorganization and cost-saving initiatives to improve operating income.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.