Truist Securities has reiterated its Hold rating on VF Corp and maintained an $18.00 price target, according to a recent research note. The stock is trading at $20.01 and has risen 59.66% over the past six months, despite carrying a high price-to-earnings ratio of 84.27.
The Truist report observed that investor sentiment toward VF Corp has been "leaning incrementally more bullish recently." That shift, the note said, coincides with InvestingPro data which indicates VF may be undervalued when measured against Fair Value estimates.
The research memo highlighted a mixed performance across VF Corp's brand portfolio. It described visibility into a turnaround at Vans as "limited," while characterizing Timberland's trends as "appear[ing] strong" and The North Face as looking "fairly solid." Truist also drew attention to growing social media interest in "all things 2016-related," suggesting that this trend could provide near-term growth opportunities for Vans.
Truist emphasized that VF Corp management has repeatedly framed its product-driven turnaround as a long-term process and has not supplied a timetable for when any clear inflection point might occur.
Several other brokerages have recently adjusted their price targets and ratings for VF Corp, illustrating a range of analyst perspectives:
- UBS increased a price target to $19 from $18 while maintaining a Neutral rating, citing third-quarter sales growth that was in line with Wall Street estimates.
- Needham raised its price target to $21 from $19, keeping a Buy rating and attributing the move to strong performances at The North Face and Timberland amid cold weather conditions.
- Stifel lifted its price target to $18 from $16 and retained a Hold rating, noting VF's solid brand portfolio despite ongoing challenges.
- In another note, UBS reiterated a Neutral rating with a $15 price target, expressing confidence in VF Corp's turnaround approach and management's ability to execute, while flagging concerns about the timing of any recovery.
These recent analyst actions reflect differing assessments of near-term sales drivers, seasonal impacts and the pace at which management's product-focused recovery will translate into measurable improvements in results. The combination of a substantial stock price gain over six months and a high P/E ratio suggests investors are paying a premium for expected improvement, even as firms debate the timing and durability of that improvement.