VF Corp. (VFC) PT Raised to $15 at Telsey

Telsey analyst Dana Telsey raised the price target on VF Corp. (NYSE: VFC) to $15.00 (from $13.00) while maintaining a Market Perform rating.

The analyst commented: "Last quarter, VFC reported disappointing results, reflecting the second consecutive period with misses on both the top and bottom lines since it shelved its outlook in late-October (at which time new-CEO Bracken Darrell unveiled his Reinvent transformation plan). Since introducing the plan, the company’s two largest brands, Vans and The North Face, have remained under significant pressure driving overall topline declines, while an eroding margin profile has weighed on the bottom line. In addition, the company announced that it has concluded its strategic portfolio review (which we now know includes Supreme). While cost saving initiatives and balance sheet improvement remain near-term priorities as Mr. Darrell rounds out his new management team in year one of his tenure, we are concerned over the ability to deliver improved performance across the brand portfolio against a challenging macro backdrop. We therefore maintain our market perform rating. That said, with the initial progress made against the Reinvent plan, we are raising our price target to $15 from $13, which assumes a 14.7x multiple on our two-year forward EPS estimate of $1.02, as compared to the current NTM multiple of 16.4x and the three-year average of 13.4x."

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