Shares of VF Corp (NYSE:VFC) soared over 12% at the time of writing after Engaged Capital took a stake in the company and revealed plans to bolster sales and drive up revenue. Engaged claims VFC, the name behind popular brands such as The North Face and Vans, has a lot of potential and could be on par with industry competitors in a few years.
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Following the purchase, Engaged has already moved to address key issues within VFC. The company was optimistic that VFC could reach a mid-$40 share price in three years.
Furthermore, Engaged said it expects VFC to make operational improvements, which include cutting costs, conducting a strategic review of its noncore assets, and reshuffling its board. Timberland, Dickies, Supreme, and Smartwool are some of the names that Engaged Capital might attempt to offload from VFC.
The purchase comes on the heels of troubles within the apparel and wear maker. Reports revealed that Engaged Capital’s Christopher B. Hetrick has already had constructive talks with VFC CEO Bracken Darrell. Engaged’s only obstacle is VFC’s founding Barbey family, which holds a sizeable stake in the company.
Is VFC a Good Buy Now?
Turning to Wall Street, analysts have a Hold consensus rating on VFC stock based on three Buys, 10 Holds, and two Sells assigned in the past three months, as indicated by the graphic above. Furthermore, the average VFC price target of $21.71 per share implies an 18.44% upside potential.
