UPDATE: Bank of America Raises PO on VFC Corp on Macro Headwinds

In a report published Friday, Bank of America analyst Robert Ohmes raised the price objective on VF Corp VFC from $62.50 to $70.00 and maintained a Buy rating.

According to the report, VFC’s decision to raise the price objective was supported by their DCF analysis and is based on 20 times their 2015 EPS estimate of $3.49, a premium to VFC’s historical multiple given an earnings mix shift to higher margin, faster growing segments.

“Risks to the downside are a weakening global retailing environment, macro headwinds in Europe/China, higher-than-anticipated sourcing cost pressures, and higher-than-expected SGA from investments in an expanded owned retail network, a fashion shift away from outdoor lifestyle clothing that could impact the strength in the outdoor coalition, opportunities in M&A may not materialize, and execution risks related to the acquisition and integration of Timberland,” the report said.

VFC closed Thursday at $62.08.