UPDATE: Deutsche Bank Reiterates Buy Rating, Raises PT on VF Corporation on Fundamental Transformation

In a report published Monday, Deutsche Bank analyst Greg Poole reiterated a Buy rating on VF Corporation VFC, and raised the price target from $215.00 to $240.00. In the report, Deutsche Bank noted, “As we've been highlighting since our June 24 sector initiation, VFC is one of our top long-term picks. The crux of our call is that over the next several years, there is no other company under coverage which is so fundamentally transforming itself with positive margin mix shifts (+350bp through 2017), including by channel (to Retail from Wholesale), by geography (to non-U.S. markets), and by product (to OAS coalition from basic denim). Beyond this, we believe that (1) revs. are accelerating in to 4Q, (2) there is upside to 4Q EPS via GM & DTC revs., and (3) the early read on 1H14 is positive. Raising PT to $240 based on a 155% PE/G or ~20x NTM P/E. Key risk is if global macro slows.” VF Corporation closed on Friday at $212.23.