V.F. Corporation Stock Makes a New Buy Case on Improving Analyst Picture

It's entirely possible that you may never have heard of V.F. Corporation (NYSE:VFC) before, but it's a much safer bet you've heard of its brands. The company behind a range of fashion brands from Timberland to Supreme to The North Face and beyond recently got a boost from the analyst community that is giving the company a new leg up. A range of factors is contributing to gains herein, and for those thinking about getting in, there are more points than ever that point to that being a good plan even in this volatile market.

Behind Pivotal Research's Latest Push

Analyst sentiment has been on an upward track for some time for V.F. Corporation, and Pivotal Research's step up is only the latest point in V.F.'s favor. The analyst upgraded the company from “hold” to “buy,” citing several points as motivation behind the gain. Comparable sales comparisons for V.F.'s Vans imprint, and overall positive outlooks to come for both Timberland and The North Face gave Pivotal all the reason it needed to swing the rating up a notch toward bullish.

Moreover, Pivotal didn't just hike the rating; it also hiked the price target. Originally valued at $86, Pivotal now looks for V.F. Corporation stock to reach $94. Given that the stock closed Friday at $78.77, that's quite a bit of upside potential coming out of Pivotal.

What's especially interesting about this movement from Pivotal is that Pivotal hasn't actually changed its stance on V.F. Corporation in three years, reports note. The last time the analyst issued guidance on V.F. Corporation was back in February 2018, and that was a downgrade. Basically, Pivotal describes the situation at the company today as being the polar opposite of what it was this time three years ago, which prompted Pivotal to, well, pivot.

Joining the Chorus

Pivotal's move to laud V.F. Corporation is not a lone voice crying out in the wilderness. No, according to our latest research, this is actually the latest in a series of moves that's seeing V.F. Corporation as the target of an increasingly bullish run.

Six months ago, the company was rated a consensus “hold”, with 11 “hold” ratings and eight “buy” ratings making up the pool's composition. Three months ago, however, that shifted to “buy” as one “sell” rating emerged, but “hold” ratings dropped to eight, and “buy” ratings increased to 12, effectively inverting the ratio between “hold” and “buy.” A month ago, meanwhile, the poles increasingly shifted; while the lone “sell” was still in play, “hold” had dropped to just five and “buy” was up to 14. Today, we stand at one “sell”, four “hold” and 15 “buy,” which makes V.F. Corporation a pretty strong buy.

The price target, meanwhile, has advanced, though erratically. Six months ago, the consensus price target stood at $68.88. That jumped to $81.26 three months ago, then eked upward to just $88.18. Today, we stand with one final spare-change jump to $88.65.More Than Just Analyst Affection

For anyone interested in putting cash behind V.F. Corporation's advancements, there are several good reasons to do so. The company has recently been spotted working to advance its position with likely customers, including building on its Council to Advance Racial Equity, or CARE, project. V.F. Corporation currently has the stated goal to have 25% of its director level and above staffed by black, indigenous, and people of color by 2030. Aiding that is a recent partnership with Pensole, a footwear design academy that seeks to train the next generation of footwear designers.

The company also placed a new global brand president for Timberland in Susie Mulder. Mulder was previously CEO of the clothing brand Nic+Zoe, which not only saw the brand push hard into direct-to-consumer efforts, but also pushed e-commerce along with its storefront operations. This is a strategy that many clothing retailers took up in the wake of the COVID-19 pandemic, and one that V.F. Corporation in general is likely eager to apply even as many places come off coronavirus restrictions.

So with some clear pushes aimed at instilling pride in a good slice of its market, as well as bringing in new staff with experience in the current desirable market strategy of choice, all of this bodes well for the clothing retailer going forward. That means the outpouring of analyst sentiment that the company's received seems to have a solid base, and that investing in V.F. Corporation going forward should be a worthwhile investment to make.