It looks like the bad times are behind it for global apparel and footwear company, VFC Corp. (NYSE: VFC) as Goldman Sachs analyst Brooke Roach upgraded the stock to a Buy from a Sell with a price target of $27. The analyst’s price target implies an upside potential of 23.7% at current levels. Shares of VFC were up in morning trading on Friday.
The analyst noted that in the past year alone after the Sell rating was initiated, VFC has dropped by more than 60%. This came about as the analyst’s forecast regarding VFC’s dividend and inventory issues came to fruition.
However, Roach stated that much of this bad news has come to pass and commented, “…the stock is nearing an inflection point with the balance of catalysts for the stock now weighted to the upside. Negative catalysts are increasingly in the rearview mirror, including well-appreciated Vans weakness and wholesale inventory rebalancing, a right-sized dividend, and unexpected CEO / management turnover.”
Analysts rate VFC stock a Moderate Buy based on six Buys, five Holds, and two Sells.