BofA Securities has raised its 12-month price target on VF Corp. (NYSE: VFC) to $15.00 from $14.00, while keeping an Underperform rating on the apparel and footwear company. The revised target sits below InvestingPro's Fair Value assessment, which implies VFC may still be undervalued despite a trailing price-to-earnings ratio of 79.
The firm made the change after VF reported third-quarter adjusted earnings per share of $0.58, topping BofA's internal projection of $0.43. BofA attributed the upside to several factors flagged by management: stronger growth in the Americas region, which rose 6% on a currency-neutral basis; better-than-expected gross margins; and a lower effective tax rate. These items are consistent with InvestingPro data cited by analysts showing net income is expected to increase this year.
Company guidance for the fourth quarter calls for sales to be flat to up 2% versus the prior year. Management credited continued momentum at The North Face, a slower cadence at Timberland, and sequential improvement at Vans. Vans, however, is still forecast to be down mid-single digits in the quarter, and BofA analysts explicitly noted they "lack confidence in a near-term Vans turnaround." The firm emphasized that its $15 target is based on a multiple of 10 times estimated fiscal 2027 EV/EBITDA.
In response to the stronger Q3 outturn, BofA raised its EPS estimates for fiscal 2026 and fiscal 2027 by 15.5% and 2.6%, respectively, to $0.82 and $1.00. The analysts said the increases reflect the recent earnings beat but are partially offset by higher selling, general and administrative expenses anticipated in the fourth quarter.
VF's reported third-quarter 2026 results included an EPS of $0.58, which also exceeded another consensus figure cited in market reports of $0.45. Revenue for the quarter came in at $2.88 billion, outpacing an expected $2.75 billion. Despite the earnings and revenue beat, the stock traded lower in premarket activity, suggesting some investor reservations about aspects of the company's outlook.
Market performance in recent months has been notable: VFC has returned 55.8% over the past six months, a strong run that accompanies a reported beta of 1.68, indicating greater volatility relative to the broader market. There were no disclosed mergers or acquisitions in the recent updates, and no analyst upgrades or downgrades were reported in connection with the latest results.
These developments provide a snapshot of how analysts and the market are weighing VF's latest operational and financial returns. The company's near-term sales guidance and brand-level trajectories appear to be central to analyst convictions, while valuation measures and expectations for Vans' recovery remain key considerations.