Deutsche Bank Previews 3Q for VF Corporation, Says Fundamentals Intact

Deutsche Bank issued a 3Q preview for V.F. Corporation VFC on Friday and saw that “fundamentals remain intact.”  A Buy rating was maintained while the price target was lowered from $75 to $73.

Analyst Dave Weiner trimmed the “4Q & 2015 EPS model (3Q remains intact), to reflect the ongoing €/$ move from the mid $1.30s.”

For 3Q, the firm maintained EPS at $1.11, driven by 8.4 percent revenue growth.

Weiner felt the “stock should continue to outperform given (1) a multi-year repositioning which is driving global share gains/GMs, as mix shifts by channel (to retail from wholesale), by geography (away from NA), and by coalition (to OAS), (2) a proficiency in Outerwear which, weather permitting, should be a ‘go-to’ category this 2H and perhaps is due for a 'replacement cycle', (3) an ability to capture lower sourcing costs & manufacturing benefits, (4) focus on pursuing an accretive acquisition.”

The report noted the reason for a lowered price target was solely FX related.

V.F. Corporation recently traded at $64.16, up 0.28 percent.