JPMorgan has downgraded VF Corp to Underweight with a reduced price target of $18, citing prolonged margin recovery challenges at its Vans brand. The firm expects Vans revenue to decline 4.5% in fiscal 2027, worse than Street estimates, as the turnaround under new leadership takes longer than anticipated.

While management highlights early traction under Brand President Sun Choe, JPMorgan notes that most current product lines weren't developed under her leadership due to 18-month lead times. The bank now forecasts fiscal 2027 earnings of $0.99 per share, below consensus, and projects operating margins reaching only 8.4% by fiscal 2028 versus management's 10% target.

The brokerage bases its valuation on 8 times fiscal 2027 EBITDA of $1.1 billion, below VF's pre-pandemic multiple of 9 times. JPMorgan also warns of moderating growth at Timberland and softer trends at The North Face in Europe and Asia-Pacific, which could further delay margin expansion as the company reinvests in stores and marketing.