VF Corp (NYSE: VFC) has been a big disappointment for its shareholders this year but a JPMorgan analyst is convinced that the worst is now in the rearview mirror.
VF Corp stock could climb over 20%On Wednesday, Matthew Boss upgraded the apparel company to “neutral” and raised his price target to $19 which represents a 23% upside on its previous close.
The New York-listed firm recently came in shy of expectations for earnings in its second financial quarter and removed guidance for its fiscal 2024.
Still, the JPM analyst turned constructive on the VF Corp stock today because its new Chief Executive – Bracken Darrell is committed to deleveraging the balance sheet to drive better margins.
VF Corp publishes Environmental and Social Responsibility Report 2023
Under the title “Purpose. Driven.” VF Corp has published its Environmental and Social Responsibility Report for the 2023 financial year. The comprehensive report emphasizes the key areas that VF focuses on: pic.twitter.com/5MDZTaRuro
VFC is currently down close to 50% versus its year-to-date high in early February.
VF Corp is committed to cutting costsLate last month, CEO Darrel committed to repaying debt worth $1.75 billion by 2025 and said the company’s “Vans” brand is stronger at present than Logitech at the time when started its transformation.
The Chief Executive laid out four key priorities – one of which was to cut costs that Matthew Boss expects will improve profitability moving forward.
Watch here: https://www.youtube.com/embed/BZgYpi94HEA?feature=oembedThe Denver-headquartered firm recently announced a transformation programme as well that it’s calling “Reinvent” which focuses primarily on brand-building in pursuit of better operating performance.
All in all, the JPMorgan analyst changed stance on the VF Corp stock that currently pays a dividend yield of over 2.0% because he’s convinced that it’s risk-reward profile has improved. Activist investor Engaged Capital also announced a stake in VFC in October.
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