Please ensure Javascript is enabled for purposes of website accessibility

Is VF Stock Set to Fall 13%?

By Eric Volkman – May 18, 2020 at 7:59PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Deutsche Bank trims its price target on the apparel conglomerate.

VF Corporation (VFC -1.78%) might soon take a double-digit hit to its stock price, if a recent analyst prognostication comes true. On Monday, Deutsche Bank's Paul Trussell lowered his price target on the stock, to $49 per share, while maintaining his hold recommendation on the stock. That isn't a significant reduction, as his previous level was $50. However that $49 is 13% lower than the current share price.

Like many consumer goods companies trying to maintain their businesses during the SARS-CoV-2 coronavirus outbreak, VF had fallen out of favor somewhat with investors. This is due in no small part to the company's recently reported Q4 of fiscal 2020, in which revenue dipped by 2% on a year-over-year basis and non-GAAP (adjusted) earnings per share plummeted 70% to $0.10.

Both headline numbers missed the average analyst estimates.

Dollar symbol about to be cut by a pair of scissors.

Image source: Getty Images.

Also, the future is fuzzy just now for VF. In that earnings release, it pulled its full-year fiscal 2021 guidance, saying it did so because of "the uncertainty of the duration and severity of COVID-19, governmental actions and regulations in response to the pandemic, and the speed with which the pandemic is developing and impacting VF, its consumers, customers, and suppliers."

In spite of these developments, a clutch of analysts remain bullish on the company. According to data from The Wall Street Journal, 10 of them currently have a buy recommendation or equivalent thereof on the stock, against 13 holds and one sell. 

The bull case for the stock seems to be winning at the moment. On Monday, VF shares rose by almost 8.6% on the day, well ahead of the gains of the wider stock market.

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

V.F. Corporation Stock Quote
V.F. Corporation
$35.78 (-1.78%) $0.65
Deutsche Bank Stock Quote
Deutsche Bank
$8.34 (-5.97%) $0.53

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/24/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.