VF Corp, the well-known maker of Vans sneakers and North Face coats, received a significant upgrade on Wednesday as J.P. Morgan analyst Matthew R. Boss raised his rating from underweight to neutral. In addition, Boss adjusted his price target on VF Corp’s stock, setting it at $19 per share, up from $15.
The news had an immediate impact, with the company’s stock rising by 3.9% in premarket trading. This is a positive development for VF Corp as its stock has experienced an 80% decline over the past two years.
Investors are optimistic about VF Corp’s prospects for several reasons. The company is expected to reverse its risk/reward profile that has plagued it for multiple years. This positive shift can be attributed to higher gross margins, cost savings, and a substantial debt repayment plan estimated to be around $1.75 billion by April 2025.
Under the leadership of Chief Executive Bracken Darrell, VF Corp is executing a strategic turnaround plan drawn from his successful tenure as chief executive at Logitech International SA from 2013 to 2023. Darrell has affirmed that the playbook he employed at Logitech is entirely applicable to VF Corp, and thus far, the similarities have been uncanny. However, he also acknowledges that Vans, one of VF Corp’s flagship brands, possesses even greater strength compared to Logitech during his time at the helm of that company.
This upgrade to neutral by J.P. Morgan signifies a turning point for VF Corp. Investors are hopeful that the company’s efforts, combined with favorable market conditions, will pave the way for a brighter future.
As VF Corp works towards achieving its goals and proving its mettle in the market, there is a growing sense of anticipation in the investment community regarding its potential performance in the coming months and years.