Morgan Stanley Believes Quarter Looks Safe For VF

In a report published Wednesday, Morgan Stanley analyst Jay Sole reiterated an Equal-Weight rating on

. In the report, Morgan Stanley noted, “VFC is a secular winner in our view, but near peak valuation and current high Street EPS estimates already reflect our base case. We believe VFC's business model supports greater and more consistent EPS growth than many Softline peers' models do. VFC differentiates itself by innovating to improve its value proposition. Peers compete more on volatile fashion trends. We model a 13% 4-yr EPS CAGR based on 10% annual sales growth, 200 bps margin expansion, and 0.2% annual share buybacks.” VF closed on Tuesday at $62.61.