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VF Corp Stock Fails to Keep Pace with Market Growth Today, Analysts Point to Key Factors

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“Despite VF Corp’s solid performance in the apparel industry, the stock lagged the market today due to increasing concerns over supply chain disruptions and rising raw material costs, leaving investors cautious about the company’s future profitability.”

VF Corp, the clothing and footwear purveyor, has recently faced yet another blow with an analyst’s price-target cut. The company’s share price failed to reach the benchmark S&P 500 index and only saw a marginal increase compared to the index’s 1% gain.

Goldman Sachs analyst Brooke Roach lowered her price target for VF Corp to $19 per share, down from her previous estimate of $24. Despite the cut, Roach maintained her buy recommendation for the company. This is just one of many negative revisions from analysts regarding VF Corp, with Williams Trading even downgrading the stock from buy to hold.

The catalyst for this downward trend was VF Corp’s recent earnings release for the second quarter of fiscal 2024. The company disappointed investors by missing the consensus analyst estimate on non-GAAP net profit and posting slightly lower revenue year-over-year. As a result, VF Corp also cut its dividend and withdrew its revenue and profitability guidance for the entire fiscal year. Additionally, the company significantly reduced its projection for free cash flow for the year.

These developments have raised concerns among investors and analysts, leading to the downward revisions in price targets. It remains to be seen how VF Corp will navigate these challenges and regain investor confidence.

Disclaimer: This article was written by Eric Volkman, who has no position in any of the mentioned stocks. The Motley Fool has positions in and recommends Goldman Sachs Group. The Motley Fool has a disclosure policy.

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