Sneaker buffs out there will likely be glad to hear about the gains VF Corporation (NYSE:VFC) made recently. It’s up just over 5% at the time of writing, and it’s largely thanks to a potential comeback from one of VF Corporation’s most recognizable shoe brands – Vans.
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The word came from Wells Fargo analyst Ike Boruchow, who upgraded from Sell to Hold. Boruchow noted that most of the problems surrounding VF Corporation have largely been worked out, which should help improve its performance going forward. Better yet, the recent dividend cut should give VF more cash on hand to work with, and let it not only “effectively deleverage” but also “reach an inflection point” in the days ahead.
Better yet, Boruchow also pointed out that the Vans brand name, which had long been underperforming, was making a comeback itself. VF Corporation has also been putting a little extra weight into sustainability and environmentalism, a point that has often struck a chord with the Environment, Social, and Government (ESG) buffs among investors. It hasn’t always been so great with regular investors, but VF Corporation’s moves seem to be comparatively mild, like “increasing access to water for everyone” and “investing in renewable energy adoption.”
Boruchow may be turning around, but he’s largely joining a majority. VFC stock is considered a Moderate Buy, with nine Buy ratings, six Holds, and one Sell. Further, with an average price target of $29.36, it offers investors an upside potential of 33.33%.
