FBR Capital Maintains a 'Market Perform' on VF Corp. (VFC); Transformative Timberland Acquisition Augments the Portfolio
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Price: $14.48 -2.62%
Rating Summary:
16 Buy, 24 Hold, 4 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 22
Rating Summary:
16 Buy, 24 Hold, 4 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 22
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FBR Capital maintains a 'Market Perform' on VF Corp. (NYSE: VFC), PT raised to $103.
FBR analyst says, "With the announcement of the acquisition of Timberland (NYSE: TBL), we are increasing our estimates and price target (to $103, up from $100) for VFC; however, given share appreciation following the news, we remain at a Market Perform rating. VF had made it clear it was aggressively pursuing acquisitions (targeting the outdoor/action sports space); however, at $2 billion, the Timberland deal is more transformative relative to our/market expectations. We think the deal makes strategic sense, layering in an iconic footwear brand in Timberland (more casual, "below the tree line") that complements the existing portfolio, The North Face (more performance, "above the tree line"), in particular."
"We are raising our FY11 estimate to $7.76 (up from $7.31, which is our estimate excluding the Timberland acquisition) based on sales growth of 19% and operating margin of 13.5% (+20 bps)."
For more ratings news on VF Corp. click here and for the rating history of VF Corp. click here.
Shares of VF Corp. closed at $101.79 yesterday.
FBR analyst says, "With the announcement of the acquisition of Timberland (NYSE: TBL), we are increasing our estimates and price target (to $103, up from $100) for VFC; however, given share appreciation following the news, we remain at a Market Perform rating. VF had made it clear it was aggressively pursuing acquisitions (targeting the outdoor/action sports space); however, at $2 billion, the Timberland deal is more transformative relative to our/market expectations. We think the deal makes strategic sense, layering in an iconic footwear brand in Timberland (more casual, "below the tree line") that complements the existing portfolio, The North Face (more performance, "above the tree line"), in particular."
"We are raising our FY11 estimate to $7.76 (up from $7.31, which is our estimate excluding the Timberland acquisition) based on sales growth of 19% and operating margin of 13.5% (+20 bps)."
For more ratings news on VF Corp. click here and for the rating history of VF Corp. click here.
Shares of VF Corp. closed at $101.79 yesterday.
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