Piper Sandler upgrades VF Corp. stock rating on Vans stabilization

Piper Sandler has upgraded VF Corp. (NYSE:VFC) stock rating to Overweight from Neutral and raised its price target to $20.00, up from $16.00. The firm believes the stock is currently undervalued with a Fair Value of $18.64, indicating potential upside beyond the analyst’s target. Vans, one of VF Corp.'s key brands, has maintained its popularity among all males in the Fall Teen Survey, with an increase in the upper-income male demographic.

Direct-to-consumer data for Vans improved, with September foot traffic being the best since February 2023. This improvement suggests that the brand's mindshare may have hit bottom and could return to growth as newness scales across wholesale in the second half of fiscal 2027 and fiscal 2028. The North Face and Timberland, which make up two-thirds of VF Corp.'s sales, also showed positive movement in the survey.

Despite a 60% rise in the number of shares shorted year-to-date, VFC has still delivered a strong 9.3% return over the past week. While the Street remains below VF Corp.'s 10%-plus EBIT margin goal for fiscal 2029, which would imply an average EPS growth of 24%, Piper Sandler sees the stock trading within a range of $12 to $22. Other notable financial updates include Stifel reiterating a Hold rating with a $17 price target and providing an earnings per share estimate of $0.54 for the upcoming quarter, and S&P Global Ratings revising VF Corp.'s outlook to positive from stable, citing improved leverage and profitability.