In a report released today, Robert Drbul from Guggenheim maintained a Buy rating on VF Corp (NYSE: VFC), with a price target of $105. The company’s shares opened today at $92.82, close to its 52-week high of $97.
Drbul observed:
“We believe the strategic rationale is compelling, with synergies across these businesses becoming less clear as they’ve evolved over time. We remain $105 PT. We believe this transaction offers compelling strategic rationale and is a logical next step for VF as an active portfolio manager. In the past ~12 months, VF has sold its Licensing business (May 2017) and Nautica (April 2018) and acquired: 1) Williamson-Dickie (Oct. 2017), 2) Icebreaker (April 2018), and 3) Altra (June 2018). We believe the transaction announced today will be a key catalyst for VF’s next layer of transformative growth and value creation and note a few key points: the deal 1) enhances strategic/management focus, 2) focuses investment on strategic priorities, 3) adds flexibility to pursue independent strategies/diverging paths to value creation, and 4) drives more efficient capital allocation.”
According to TipRanks.com, Drbul is a top 100 analyst with an average return of 18.5% and a 79.0% success rate. Drbul covers the Services sector, focusing on stocks such as National Vision Holdings Inc, Lululemon Athletica Inc, and Ascena Retail Group.
Currently, the analyst consensus on VF Corp is a Strong Buy with an average price target of $100.63, which is an 8.4% upside from current levels. In a report released today, Canaccord Genuity also maintained a Buy rating on the stock with a $108 price target.
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The company has a one-year high of $97 and a one-year low of $61.56. Currently, VF Corp has an average volume of 2.08M.
Based on the recent corporate insider activity of 47 insiders, corporate insider sentiment is negative on the stock. Most recently, in June 2018, Scott H. Baxter, the VP & Group Pres. of VFC sold 65,988 shares for a total of $5,533,094.
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VF Corp. designs, produces, procures, markets and distributes lifestyle apparel, footwear and related products. It operates through the following segments: Outdoor & Action Sports, Jeanswear, Imagewear and Others.
