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Why Most of Wall Street Recommends Holding VF Corporation

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Sep. 27 2017, Published 2:43 p.m. ET

Wall Street mostly favors of holding VFC

VF Corporation (VFC) is covered by 23 Wall Street analysts with a mostly neutral view on the company. It has received a rating of 2.6 on a scale of 1 (strong buy) to 5 (sell).

65% of analysts suggest holding the stock. Morgan Stanley, Goldman Sachs, and Evercore ISI Group are among the brokers with a “hold” rating on VFC.

On September 25, KeyBanc Capital Market changed its view on the company and downgraded it to “Sector Weight” from “Overweight”. Analyst Edward Yruma said, “Persistent weakness in jeanswear and Timberland has made VF increasingly reliant on continued momentum at Vans.”

He also noted, “Despite easier comparisons, the long-term growth rate of North Face (outdoor and action sports is 65% of revenue) is likely closer to low single digits.”

On September 12, Bernstein initiated coverage on VFC with a “market perform” rating.

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Less than one-third of analysts suggest buying VFC

30% of analysts, including Canaccord Genuity and Susquehanna, have recommended a “buy” on VFC, compared to 78% and 67% “buy” ratings on PVH Corp (PVH) and Hanesbrands (HBI).

VFC’s stock has an average price target of $64.75, indicating an upside of 5%. In comparison, PVH and HBI have respective upsides of 13% and 14%. Read Part 6 and Part 7 of this series to learn about the recent analyst actions on the two companies.

Investors who want exposure to VFC could consider the Morningstar Wide Moat ETF (MOAT), which invests 2.6% of its portfolio in VFC.

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