Goldman Upgrades VF Corp. (VFC) to Buy, 'we believe strategic initiatives now in place to improve execution will drive relative outperformance in the stock'

Goldman Sachs analyst Brooke Roach upgraded VF Corp. (NYSE: VFC) from Sell to Buy with a price target of $27.00 (from $26.00).

The analyst comments "We upgrade VFC to Buy from Sell. VFC's revenue and earnings trajectory has underperformed the market, but we believe the stock is nearing an inflection point with the balance of catalysts for the stock now weighted to the upside. Negative catalysts are increasingly in the rearview mirror, including well-appreciated Vans weakness and wholesale inventory rebalancing, a right-sized dividend, and unexpected CEO / management turnover. Since added to the Americas Sell List on July 14, 2021, VFC is -73% vs. S&P 500 -5% and our coverage average of -35%. Looking ahead, we believe strategic initiatives now in place to improve execution will drive relative outperformance in the stock. In particular, we see potential upside from the following: (1) A sequentially stronger new product innovation pipeline at Vans, which combined with better retail merchandising and wholesale distribution optimization should help stem declines in North America revenues; (2) Enhanced operational focus, with better inventory management and cost control delivering stronger FCF in FY24; (3) Strategic optionality from new management, where we highlight VFC is in talks to find a new permanent CEO and has recently appointed new leaders at Vans, Dickies, and emerging brands; (4) China reopening; (5) Balance sheet deleveraging."

For an analyst ratings summary and ratings history on VF Corp. click here. For more ratings news on VF Corp. click here.

Shares of VF Corp. closed at $21.82 yesterday.

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