Stifel analysts lifted their price target for VF Corp. (NYSE:VFC) to $25 from $21, maintaining a Buy rating on the stock. The analysts see a promising opportunity for VFC shares to surprise on the upside and experience a rerating in the coming quarters.
Starting in Q3, the analysts anticipate positive shifts, noting that the October report for Q2 is expected to reveal mixed results but with constructive developments. Positive indicators include an expected turnaround in Vans, an improvement in gross margins after a long period of year-over-year declines, further cost-saving initiatives, and potentially expanded guidance.
While The North Face brand might experience a slight slowdown in Q2, the analysts project a substantial recovery in Q3. Overall, the second quarter will likely showcase signs of stabilization, with significant margin expansion potential in H2 and fiscal 2026. Stifel’s projections for H2 and 2026 remain well above consensus, driven by the company’s improving fundamentals, clearer outlook, progress in de-risking the balance sheet, and potential for positive estimate revisions. They expect these factors to support a higher valuation for VFC shares heading into 2025.