Fannie Mae, Freddie Mac shares tumble after conservatorship comments
Investing.com - Evercore ISI has reduced its price target on VF Corp (NYSE:VFC) to $13.00 from $15.00 while maintaining its "In Line" rating on the stock. According to InvestingPro data, VF Corp, currently valued at $5.2 billion, has shown significant volatility with a 48% decline over the past six months, though the stock has rebounded 9% in the past week.
The firm cited ongoing challenges with the company’s Vans brand, noting that it does not see signs of improvement yet. Evercore ISI also identified potential new risks for VF Corp’s The North Face brand. Despite these challenges, the company maintains a strong dividend track record, having paid dividends for 55 consecutive years.
The research firm highlighted tariffs as an incremental negative factor for VF Corp, adding that the company likely lacks sufficient pricing power across its portfolio to offset these pressures.
While favorable foreign exchange rates could benefit VF Corp, Evercore ISI does not expect the stock to respond positively to currency-driven earnings revisions until the company’s fundamental performance improves.
The firm acknowledged that VF Corp has planned its capital expenditures with flexibility in fiscal year 2026 to maintain its debt reduction schedule, which Evercore ISI described as "a key focus for bears" on the stock.
In other recent news, V.F. Corporation held its 2025 Annual Meeting of Shareholders where all twelve nominees for the board of directors were elected, including Alexander K. Cho and Bracken P. Darrell. The company also announced a change in its executive team as Bryan H. McNeill, the current Vice President and Chief Accounting Officer, plans to retire on June 1, 2025, with Michael E. Phillips set to take over the role. Meanwhile, BNP Paribas (OTC:BNPQY) Exane maintained a Neutral rating on V.F. Corp but significantly cut the stock price target from $25 to $11, citing mixed fourth-quarter results where earnings exceeded expectations, but free cash flow and Vans brand revenue were disappointing.
Stifel analysts also adjusted their outlook, lowering the price target from $28 to $15 while maintaining a Buy rating, noting the company’s mixed performance with growth in The North Face and Timberland brands. BMO Capital Markets followed suit, reducing the price target to $15 from $25 and keeping a Market Perform rating, acknowledging the company’s better-than-expected adjusted earnings per share and gross margin improvements. Despite some brand-specific challenges, such as declines in Vans and Dickies sales, management remains optimistic about the Vans brand’s margin performance. These developments highlight the ongoing challenges and strategic adjustments within V.F. Corporation.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.