VF Corporation: New Coverage and Price Forecast by Needham Analyst
In a recent research note, Needham & Company’s apparel, textiles, and footwear analyst, Tom Nikic, initiated coverage on VF Corporation (VFC) with a price target of $28. This represents an approximately 13% upside from the current stock price.
About VF Corporation
VF Corporation is a global apparel, footwear, and accessories company. The company’s portfolio includes well-known brands such as The North Face, Timberland, Vans, Wrangler, and Lee. VF Corporation operates in two segments: Outdoor & Action Sports and Jeanswear.
Needham’s Rationale
According to Nikic, VFC’s stock is undervalued based on its strong brand portfolio, solid financials, and growth opportunities. He believes that the company’s digital transformation efforts, including its direct-to-consumer (DTC) strategy, will drive revenue growth and margin expansion.
Strong Brand Portfolio
VF Corporation’s brand portfolio is a key driver of its growth. The company’s brands have strong consumer loyalty and wide market reach. For instance, The North Face is the leading outdoor brand in the US, and Timberland is a leading footwear brand. Vans is also gaining popularity, especially among younger consumers.
Solid Financials
VF Corporation’s financials are solid, with consistent revenue growth and strong profitability. In the fiscal year 2021, the company reported revenue of $9.1 billion, up 17% year-over-year. Its net income was $1.3 billion, up from $818 million in the previous year.
Growth Opportunities
VF Corporation is investing in its digital transformation to drive growth. The company’s DTC business has been growing rapidly, with digital sales up 35% in the fiscal year 2021. VFC plans to double its DTC sales by 2025. Additionally, the company is expanding its presence in international markets, particularly in Asia.
Impact on Individual Investors
For individual investors, Needham’s price target of $28 for VFC represents an attractive opportunity for potential gains. However, as with any investment, there are risks to consider, including market volatility and company-specific risks. It is important for investors to conduct their own research and consult with a financial advisor before making any investment decisions.
Impact on the World
VF Corporation’s growth and success can have a positive impact on the world in several ways. The company’s focus on sustainability and ethical manufacturing practices can help reduce the environmental impact of the apparel industry. Additionally, the growth of VFC’s DTC business can lead to the creation of new jobs and economic opportunities.
Conclusion
In summary, Needham’s initiation of coverage on VF Corporation with a price target of $28 highlights the company’s strong brand portfolio, solid financials, and growth opportunities. Individual investors may find this an attractive investment opportunity, but it is important to consider the risks. VF Corporation’s growth can also have positive impacts on the world, including reducing the environmental impact of the apparel industry and creating new economic opportunities.
- VF Corporation is a global apparel, footwear, and accessories company with a strong brand portfolio.
- Needham & Company’s analyst, Tom Nikic, initiated coverage on VFC with a price target of $28.
- VFC’s financials are solid, with consistent revenue growth and strong profitability.
- The company is investing in its digital transformation and expanding its presence in international markets.
- Individual investors may find VFC an attractive investment opportunity, but it is important to consider the risks.
- VF Corporation’s growth can have positive impacts on the world, including reducing the environmental impact of the apparel industry and creating new economic opportunities.
