V.F. Corp Upgraded to “Buy” at Janney Montgomery Scott; Selling Overdone (VFC)

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Apparel maker V.F. Corporation ( VFC ) on Tuesday caught a big upgrade from analysts at Janney Montgomery Scott.

The firm said it boosted its rating on VFC from "Hold" to "Buy" with a $160 price target, which suggests a 17% upside to the stock's Monday closing price of $137.10.

A Janney Montgomery Scott analyst commented, "We are upgrading shares of VFC to Buy, as our meetings with the company give us greater comfort that the market has over-reacted to fears regarding Europe (down 12% from the peak), exacerbated by recent commentary from Ralph Lauren ( RL )(Not Covered). We hosted investor meetings with VFC at our Janney Consumer Conference, and we come away with greater conviction that the company is positioned to navigate through the weakening macro conditions in Europe, while continuing to drive top line growth beyond the region (taking share domestically, further penetrating emerging markets) and drive greater margin expansion (input cost inflation reversal + mix shift, DTC, Int'l), all of which support a continued robust earnings trajectory over the next few years."

V.F. Corp shares jumped $3.48, or +2.5%, in late morning trading Tuesday.

The Bottom Line
Shares of V.F. Corp ( VFC ) have a 2.10% dividend yield, based on last night's closing stock price of $137.10. The stock has technical support in the $130 price area. If the stock can firm up, we see overhead resistance around the all-time high levels of $150-$156 a share.

V.F. Corporation ( VFC ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Stocks

Referenced Stocks: RL , VFC

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