Goldman Sachs chief credit strategist Lotfi Karoui departs after 18 years - Bloomberg
Investing.com -- Stifel downgraded VF Corp to Hold from Buy after company’s agreement to sell its Dickies brand for $600 million saying the risk/reward looks balanced after the stock’s recent rally.
The broker raised its price target to $16 from $15, noting that the sale price for Dickies was stronger than expected and will help VF reduce debt.
Stifel estimated the deal values Dickies at about 1.2 times forward sales and 15 times forward earnings, with proceeds earmarked to pay down borrowings.
Shares of the Vans and North Face owner have climbed 12.5% over the past month, outpacing the S&P 500’s 2.6% rise, leaving less room for further gains without clearer signs of a turnaround, analysts said.
Stifel credited VF’s outdoor brands, including The North Face and Timberland, with solid growth trends, but said Vans, which makes up nearly a quarter of revenue, remains the key swing factor.
The analysts expect Vans to rebase at around $2.1 billion in sales, with its path back to sustainable growth uncertain.
“We appreciate the brand portfolio and organizational efforts to realign the business,” Stifel wrote.
“But recognize a leg higher in shares requires confidence in accelerating fundamentals which we believe could be a year out”