After Susquehanna and Robert W. Baird gave VF Corp (NYSE: VFC) a Buy rating last month, the company received another Buy, this time from Guggenheim. Analyst Robert Drbul maintained a Buy rating on VF Corp yesterday and set a price target of $105. The company’s shares closed yesterday at $89.65.
“We believe VFC has appropriately managed demand and believe the $5bn revenue target is achievable. We remain BUY-rated on shares as we continue to favor VFC’s strong portfolio of brands, headlined by Vans. With Vans on pace to surpass the 2021 target it introduced in FY19, VFC provided an update to the L-T plans and laid out its goal to grow $5bn business by FY23. At ~$3bn in revenue, Vans has grown at an ~17% CAGR since VFC’s acquisition in 2004 (from ~$360mn). More recently, growth has accelerated into the ~30-40% range over the past 3 quarters, driven by broad-based strength, globally. While ambitious, we believe the $5bn target is achievable as Vans adequately manages consumer demand. Notably, Vans is adding new customers, particularly women, and expanding internationally.”
According to TipRanks.com, Drbul is a top 100 analyst with an average return of 18.6% and a 78.7% success rate. Drbul covers the Services sector, focusing on stocks such as National Vision Holdings Inc, Lululemon Athletica Inc, and Wal-Mart Stores Inc.
Currently, the analyst consensus on VF Corp is a Strong Buy with an average price target of $100.73.
VF Corp’s market cap is currently $35.46B and has a P/E ratio of 59.84. The company has a Price to Book ratio of 9.50.
Based on the recent corporate insider activity of 47 insiders, corporate insider sentiment is negative on the stock. Last month, Scott Roe, the VP & CFO of VFC sold 29,544 shares for a total of $2,740,797.
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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.