UPDATE: Stifel Nicolaus Raises PT on VF Corp. Following Investor Day
In a report published Wednesday, Stifel Nicolaus analyst Jim Duffy reiterated a Buy rating on VF Corp. (NYSE: VFC), and raised the price target from $190.00 to $207.00.
In the report, Stifel Nicolaus noted, “Yesterday, VF Corp hosted an Investor Day in NYC featuring growth objectives for 2017, an in-depth overview of long-term strategy, and discussion on key platforms and brands to drive growth. Financial objectives for 2017 include: $17.3bn in revenue (~10% CAGR) and $18.00 in EPS (~13% CAGR), driven by a 300bps increase in gross margin (49.5%) from 2012 to 2017 (management reiterated expectations for 100bps of expansion in 2013, implies 47.5%) and 250bps increase in operating margin (management reiterated expectations for 100bps of expansion in 2013, implies 14.5%). Revenue growth is expected to come from organic (8% CAGR) and acquisitions (2% CAGR). Cash flow from operations is targeted to increase to $2.4bn by 2017 from $1.3bn in 2012, and management highlighted priorities of cash as: 1) acquisitions in Outdoor & Action Sports, 2) a dividend payout ratio of 40% (implies $7.20 dividend per year in 2017), and 3) share repurchases.”
VF Corp. closed on Tuesday at $188.06.
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