VF Corp stock price target lowered at Telsey to $17 from $27

Wednesday, Telsey Advisory Group adjusted its price target on VF Corp (NYSE:VFC) shares, bringing it down to $17 from the previous $27 while maintaining a Market Perform rating. The revision follows VF Corp’s recent earnings report, which indicated positive sales growth for the first time since the first quarter of fiscal year 2023. The company’s gross margin also saw a stronger expansion than anticipated, and operating costs were reported to be lower than expected.

The company’s Outdoor segment experienced a 7% growth, which analysts found promising. However, the Active segment, which includes the Vans brand, showed a 6% decline. According to Telsey, the Vans brand is still in the midst of a turnaround effort. Despite the challenges, VF Corp has made progress in reducing costs, with the first phase of its Reinvent program on track to achieve $300 million in savings. The company is also working towards an additional $250 million to $300 million in net savings from selling, general and administrative expenses (SG&A), as outlined during its Investor Day in October of the previous year.

The third-quarter results were seen as a sign of sequential improvement and better execution by the company. Nevertheless, the analyst expressed caution due to ongoing brand challenges, particularly with Vans, and broader concerns such as macroeconomic uncertainty and geopolitical volatility, which includes issues related to tariffs.

The new price target of $17 is based on a 15.9x multiple applied to Telsey’s two-year forward earnings per share estimate of $1.07. This valuation reflects a decrease from the near-term multiple of 14.2x and is below the five-year average multiple of 19.7x. Despite the reduction in the price target, the Market Perform rating suggests a neutral outlook on the stock, indicating that the analyst does not foresee significant movement either upward or downward in the near term.

In other recent news, VF Corp’s earnings and revenue projections have been adjusted by Citi, which downgraded the company’s stock rating from Buy to Neutral and slashed the price target to $12. The revised forecasts reflect concerns over VF Corp’s ability to revitalize its Vans brand amid economic challenges, with anticipated lower sales and increased product costs. Citi’s new earnings estimates for fiscal years 2026 and 2027 are $0.77 and $0.70 per share, respectively, down from previous projections. Meanwhile, Wells Fargo (NYSE:WFC) upgraded VF Corp’s stock rating from Underweight to Equal Weight, also setting a price target of $12.

Stifel maintains a Buy rating with a $35 price target, noting potential growth from The North Face and Timberland brands. VF Corp announced the appointment of Abhishek Dalmia as Executive Vice President and Chief Operating Officer, effective immediately, as part of its strategy to enhance leadership. Additionally, the company underwent a board reshuffle following the resignation of director W. Rodney McMullen, reducing the board size from thirteen to twelve directors. These developments reflect VF Corp’s ongoing efforts to navigate the competitive apparel industry landscape.

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