VF Corp (NYSE:VFC) has seen a notable adjustment in its stock outlook, with an analyst from TD Cowen increasing the price target on the company's shares to $16.00, up from the previous $9.00, while maintaining a Hold rating.
The adjustment comes as VF Corp's CEO, Bracken Darrell, has implemented significant positive changes within the company, which are expected to influence its financial performance positively in the coming years.
The analyst's revised model anticipates that VF Corp could achieve a consolidated Earnings Per Share (EPS) of over $1 by the fiscal year 2026, with a potential path to $600 million in Free Cash Flow (FCF), representing a 10% yield.
While the sale of Supreme necessitates a recalibration of expectations, the analyst notes that management has the opportunity to steer a successful turnaround. The company is expected to focus on this objective while managing its debt obligations, which have maturities occurring in the fall and spring.
VF Corporation (NYSE:VFC) shareholders recently approved a new stock compensation plan and elected thirteen directors, indicating a commitment to governance standards.
The company also confirmed PricewaterhouseCoopers LLP as its independent auditor for the 2025 fiscal year. VF Corp has seen a series of analyst upgrades and downgrades, including a price target increase from Telsey Advisory Group to $15.00, an upgrade from Citi to Buy with a new price target of $20, and Stifel maintaining a steady price target of $19.00.
These changes were influenced by VF Corp's recent sale of the Supreme brand for $1.5 billion, which is expected to alleviate upcoming debt obligations.
InvestingPro Insights
Recent analysis from InvestingPro provides a deeper look into VF Corp's financial health and performance trends. Notably, the company has a high shareholder yield, which is a positive sign for investors seeking returns through dividends and share repurchases. This aligns with VF Corp's impressive history of maintaining dividend payments for 54 consecutive years, a testament to its commitment to shareholder value.
In terms of growth, net income is expected to grow this year, offering a promising outlook for the company's profitability. This is further supported by InvestingPro Tips indicating that analysts predict the company will be profitable this year. Despite a challenging past twelve months, where VF Corp was not profitable, the stock has shown strong returns over the last month and three months, signaling investor confidence in its turnaround efforts.
From a valuation perspective, VF Corp's market capitalization stands at $6.23 billion, with a negative Price to Earnings (P/E) ratio, reflecting the recent unprofitability. However, the company's revenue for the last twelve months as of Q4 2024 was over $10.45 billion, although it experienced a decline in growth during the same period. The gross profit margin remains robust at 52.05%, underscoring VF Corp's ability to maintain profitability at the operational level.
Investors interested in VF Corp can find over 7 additional InvestingPro Tips and detailed metrics by visiting https://www.investing.com/pro/VFC, which offers comprehensive analysis and real-time data to help make informed investment decisions.
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