Analysts at JPMorgan raised V.F. Corp. (NYSE:VFC) to Neutral from Underweight in a note Wednesday, lifting the price target to $19 from $15 per share.
The firm hosted VF Corp’s CEO, Bracken Darrell, Chief Financial Officer Matt Puckett, and VP of Investor Relations Allegra Perry at its 5th Annual Global Luxury & Brands Conference in Paris.
"We see CEO Darrell’s LOGI-driven and 'controllables-based' playbook through FY25 reversing the multi-year risk/reward profile," the analysts stated.
They said this is due to greater clarity on the company's profit inflection in FY25 and its more than $1.75 billion of “organic” debt paydown by April 2025.
JPMorgan also notes that on the offensive side, CEO Darrell has increased the company's agility by eliminating complexity through a structural operating model change including greater sell-out focus, strategically reinvesting in innovation, marketing and brand building, and re-focusing on the "the core."
"Digging deeper - we see CEO Darrell leveraging 5 turnaround tenets from his tenure at LOGI (playbook outlined below) with the third step in the '3-Step Improvement Plan' in our view being a FY26 return to profitable growth outlined at a 2024 Analyst Day on ~12% margins and ~2.5x leverage by our model builds," the analysts concluded.