The firm said it raised its rating on the U.S.-based global apparel company as it believes the company will improve its brands and could continue to make acquisitions.
KeyBanc said it left the company's recent analyst day "impressed" with the company's "ability to execute large and complex mergers and acquisitions."STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
KeyBanc has an $80 price target on VF Corp.
Shares of VF Corp. are higher by 0.98% to $67.70 in pre-market trading.
Separately, TheStreet Ratings team rates VF CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate VF CORP (VFC) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, increase in net income, revenue growth and reasonable valuation levels. We feel these strengths outweigh the fact that the company shows weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 35.29% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, VFC should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- VF CORP has improved earnings per share by 16.1% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, VF CORP increased its bottom line by earning $2.71 versus $2.43 in the prior year. This year, the market expects an improvement in earnings ($3.10 versus $2.71).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Textiles, Apparel & Luxury Goods industry average. The net income increased by 14.0% when compared to the same quarter one year prior, going from $138.27 million to $157.68 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 11.9%. Since the same quarter one year prior, revenues slightly increased by 8.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- You can view the full analysis from the report here: VFC Ratings Report