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UPDATE: J.P. Morgan Raises PT on VF Corp on EPS Growth Story

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In a report published Tuesday, J.P. Morgan analyst Matthew R. Boss reiterated an Overweight rating on VF Corp (NYSE: VFC), and raised the price target from $175.00 to $195.00.

In the report, Boss noted, “We view VFC as a core multi-year compounding mid-teens EPS growth story with a diversified brand portfolio (TNF, TBL, Vans), strong management bench, and balance sheet which provides ample flexibility (annual FCF of $1.5B+). Our recent meeting with management pointed to VFC's multi-year strategy ‘On Track' with EPS power of $14-$15 likely by FY15 on our model (~50% upside vs. FY12) given a significant International in-fill opportunity (i.e. Asia at ~9% of sales) and higher-margin DTC expansion (22% today moving to 25% w/ E-commerce only 2% of sales) representing longer-term levers. Looking ahead, potential catalysts include (1) Timberland improvement (not in our model) with a potential top-line inflection in 2014 (FY12 SKU reduction; US Men's apparel in 2H13), (2) acquisition or increased capital allocation (dividend increase likely in 2H13 as the company targets a 40% dividend payout ratio vs. 32% today), and (3) June 11 analyst day: 5-Year consolidated plan (last plan provided in FY11).”

VF Corp closed on Monday at $177.36.

Latest Ratings for VFC

Aug 2015Canaccord GenuityInitiates Coverage onBuy
Aug 2015Sterne AgeeInitiates Coverage onNeutral
Aug 2015Sterne Agee CRTInitiates Coverage onNeutral

View More Analyst Ratings for VFC
View the Latest Analyst Ratings

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