Piper Sandler on Friday raised its price target for VF Corp. (NYSE: VFC) to $18.00 from $14.00, while retaining a Neutral rating on the apparel company. The new target is still below the stock's prevailing market price of $20.11, although InvestingPro data cited by the research firm indicates the shares may appear undervalued when measured against a Fair Value assessment.
The upgrade in the price objective followed a recent investor meeting during which Piper Sandler analysts met with VF Corp. executives, including Chief Financial Officer Paul Vogel and Vice President of Investor Relations Allegra Perry. According to Piper Sandler, questions from investors centered largely on the Vans brand, which the firm said displayed only modest improvement in trends during VF's fiscal third quarter of 2026.
Piper Sandler highlighted several operational positives. Digital sales grew 10% excluding the Dickies brand, marking what the firm called the strongest digital performance in some time, with particular momentum in the Americas. Gross margins also topped expectations by 120 basis points, an outcome that came despite approximately $40 million of largely unmitigated tariffs.
The research note tied these operational gains to VF Corp.'s market performance over recent months, pointing out a 59.83% total return in the stock over the previous six months, as reported by InvestingPro. At the same time, the firm flagged softer results in the Asia-Pacific region for The North Face and Timberland brands, underscoring unevenness across the company's portfolio.
Following VF's fiscal third-quarter results, which beat consensus, Piper Sandler raised its internal estimates. The company reported third-quarter 2026 earnings per share of $0.58, above the $0.45 analysts had expected. Revenue came in at $2.88 billion versus forecasts of $2.75 billion. Despite those upside surprises, VF's shares declined after the release, reflecting investor reservations about some aspects of the business and its outlook.
Piper Sandler's revised $18.00 target is derived from applying a 10x EV/EBITDA multiple to fiscal year 2027 estimates, effectively rolling forward the valuation basis from fiscal 2026 to fiscal 2027. The firm noted that while disciplined profitability management should underpin valuation, broader valuation expansion is unlikely without higher top-line growth across VF's brand portfolio.
InvestingPro metrics cited in the note show VF Corp. trading at an EV/EBITDA multiple of 13.79 and a price-to-earnings ratio of 33.36. The company's PEG ratio was listed at 0.24, which the research firm interpreted as indicating potential undervaluation relative to growth expectations. VF also carries a 1.79% dividend yield and has a track record of 56 consecutive years of dividend payments.
In related analyst activity, BofA Securities adjusted its price objective for VF Corp. to $15.00 from $14.00 while maintaining an Underperform rating. BofA attributed the recent earnings beat to stronger growth in the Americas, improved gross margins, and a lower effective tax rate.
Overall, Piper Sandler's action reflects a calibration of estimates after direct management engagement and a quarterly results beat; however, the firm emphasized that without broader revenue acceleration across VF's portfolio, the stock may remain range-bound despite margin and digital sales gains.
Key points
- Piper Sandler raised its VF Corp. price target to $18.00 from $14.00 and maintained a Neutral rating; the new target is below the stock's trading price of $20.11.
- VF reported fiscal Q3 2026 EPS of $0.58 on revenue of $2.88 billion, both ahead of analyst expectations; digital sales grew 10% excluding Dickies and gross margins beat by 120 basis points despite $40 million in tariffs.
- Regional and brand performance was mixed, with momentum in the Americas but softer results in Asia-Pacific for The North Face and Timberland; BofA also raised its target to $15.00 while keeping an Underperform rating.
Risks and uncertainties
- Top-line growth across VF's brand portfolio remains uneven, which may limit valuation upside and keep the stock range-bound - this affects the apparel and consumer discretionary sectors.
- Softer demand in the Asia-Pacific region for key brands like The North Face and Timberland could weigh on revenue and regional sales momentum - this impacts international retail exposure within the consumer sector.
- Investor concerns persisted despite a quarterly earnings beat, as evidenced by a post-earnings stock decline, signaling possible sensitivity to near-term outlook and execution risks - relevant to equity market sentiment in retail and branded apparel names.