Jefferies Initiates Hold on V.F. Corp, Predicts 4.67% Drop

A recent report reveals Jefferies has initiated coverage of V.F. Corporation, issuing a 'Hold' recommendation alongside a projected 4.67% decline in stock value. However, the company is forecasted to achieve a substantial revenue growth of 23.96% and an EPS of 2.65.

Date: 29-09-2024

AI Rating: 5

Jefferies' report presents mixed signals for V.F. Corporation. The firm has initiated coverage with a Hold recommendation, suggesting a cautious approach from analysts. Alongside this, the average price target has been set to 16.31 €/share, indicating a 4.67% potential decline from its latest closing price of 17.11 €/share.

Despite the pessimistic price forecast, V.F. is projected to experience significant financial growth. The report anticipates a 23.96% increase in annual revenue, with projections estimating total annual revenue of 12,738MM.

Additionally, V.F. is expected to post a non-GAAP EPS of 2.65, portraying the company’s overall profitability potential. This could be seen as a positive factor, as a higher EPS typically suggests better profitability and financial health.

However, fund sentiment appears tepid as ownership by institutions has slightly decreased by 1.47%. The average portfolio weight in V.F. is modest at 0.11%, albeit showing an increase of 12.12% in recent filings. Total shares owned by institutions have seen an increase of 12.91%, indicating some level of institutional confidence despite slight ownership declines.

There is variability in institutional ownership with some funds increasing their stake in the company, such as Dodge & Cox, which grew its holdings by 16.75%, while others like Northern Trust have significantly reduced their positions by 61.23%. The overall sentiment towards V.F. seems cautious as reflected in the mixed changes in institutional investor positions.

Stocks: VFC