Market Overview

VF Corp Acquisition Strategy Appears To Be Paying Off, Deutsche Bank Says

VF Corp Acquisition Strategy Appears To Be Paying Off, Deutsche Bank Says

VF Corp (NYSE: VFC) acquisition strategy appears to be paying off, following a new analyst initiation report.

The Analyst

Deutsche Bank analyst Paul Trussell initiated coverage with a Buy rating and a $93 price target.

The Thesis

Trussell outlined five reasons behind his bullish stance on VF Corp.

The analyst says VF Corp has healthy channel checks and has the potential for beat and raises in the upcoming quarter. Trussell also says the company’s acquisition of Williamson-Dickie, which closed in late 2017 for $820 million, adds to the company’s already diversified portfolio and has the opportunity to double the brand’s EBIT margin over the next few years.

VF Corp's high penetration in the outdoor and action sports, which the analyst says is a preferred category, will help the company continue to outperform he says. According to NPD data, the U.S. outdoor industry sales amounted to $18.9 billion in sales in the 12 months that ended in April.

Trussell says VF Corp has a long runway ahead in operating margin gains, due to continuing GPM expansion and an upcoming inflection point in SG&A leverage. He continues to favor VF Corp for its industry leading shareholder returns and supportive balance sheet.

Price Action

VF Corp shares closed up marginally at $83.70.

Related Links:

VF Corp Falls Despite Q1 Earnings Beat

Goldman Sachs Bullish On Tapestry, VF Corp, Tiffany; Says Sell PVH

Latest Ratings for VFC

Oct 2019MaintainsOutperform
Sep 2019MaintainsNeutral
May 2019MaintainsNeutral

View More Analyst Ratings for VFC
View the Latest Analyst Ratings

Posted-In: Deutsche Bank Paul TrussellAnalyst Color Price Target Initiation Analyst Ratings Best of Benzinga


Related Articles (VFC)

View Comments and Join the Discussion!

Latest Ratings

WDAYSociete GeneraleUpgrades
BKUDA DavidsonInitiates Coverage On39.0
JDVertical GroupInitiates Coverage On
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at

Apple Discontinues Photo Service

Wells Fargo Projects Sustained Growth For British Telecom Supplier Arris