Deutsche Bank Downgrades VF Corp. (VFC) to Hold
- Top 10 News for 12/2: Crude Rips on OPEC Cut; Starbucks' Schultz Steps Down; Nonfarm Payrolls Flat in Nov.
- Unemployment Rate Drops to 4.6%
- Bond yields slip on U.S. jobs data, euro steady before Italy vote
- Alibaba (BABA) Founder Jack Ma Discuss Plans to Retire; 'I Don't Want to Die at the Office'
- Starbucks Coffee (SBUX) CEO Howard Schultz to Step Down, Appointed Executive Chairman; Kevin Johnson New CEO
Get inside Wall Street with StreetInsider Premium. Claim your 2-week free trial here.
Deutsche Bank downgraded VF Corp. (NYSE: VFC) from Buy to Hold with a price target of $57.00 (from $63.00). Dave Weiner thinks upside will be difficult.
"While our positive long-term view on VF’s strong mgmt. and acquisitive model hasn’t changed post Monday’s results, there are now medium-term issues which when combined with valuation, likely cap stock upside," said Weiner.
The analyst continued, "Primarily, VF is struggling to drive revs. (let alone in line with l-t 8% plan CAGR) and commentary that the wholesale channel is sitting on too much competitive product and reordering closer-to-need was worse than we expected. Adding risk, weakness is coming across brands. Further, while VF remains a l-t global share gainer, the market likely remains cautious ahead of the 1Q Analyst Day. Finally, while gross margin potential is positive, investors are focused on rev. growth to drive valuation, which we believe is now limited to the upside at 15.5x-16.5x ‘17. D/G as heightened concerns about mid-term rev. stabilization are now balanced with potential cold weather benefits or an acquisition."
Shares of VF Corp. closed at $53.07 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Pivotal Research Downgrades Kroger (KR) to Hold
- Jefferies Raises Price Target on Ulta Salon (ULTA) to $270; Reiterates Hold
- Shopify (SHOP): CFO Meetings Indicate Strong Growth Ahead - Wedbush
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS View, Analyst PT Change, Downgrades
Related EntitiesDeutsche Bank, Definitive Agreement
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!