VF Corporation (NYSE:VFC) was cut to Neutral from Overweight at Piper Sandler on Monday, with analysts lowering the price target for the stock to $20 from $28 per share.
The analysts said the firm is now swapping into stocks that are less speculative and have quality earnings growth with a clean balance sheet, given the current macro uncertainty.
«We now believe the Vans turnaround will take longer than originally anticipated, which also impacts VFC's timeline on decreasing leverage,» the analysts wrote.
«Congestion within the broader U.S. wholesale channel will limit the brand turnaround in the near term as open to buys are extremely tight meaning retailers will be favoring product that is seeing strong sell-through,» they added.
The analysts also contend that the unfavorable ruling on the Timberland tax credit eliminates a positive catalyst as it relates to decreasing leverage.Read more on investing.com