Goldman Sachs has adjusted its price target for VF Corp. (VFC, Financial), bringing it down from $25 to $12 while maintaining a Neutral rating on the company's shares. This move is part of a broader reassessment of the U.S. apparel and softlines sector in light of a more cautious economic outlook.
The investment firm has also revised its U.S. GDP growth projections, predicting a decrease to 0.5% in 2025 from an earlier estimate of 2.5% for 2024, measured on a Q4-to-Q4 basis. In addition, Goldman Sachs now sees a 45% chance of a recession occurring, signaling increased caution among economists.
Despite not fully factoring in a recessionary scenario, Goldman Sachs highlights that the current market volatility, coupled with rising geopolitical tensions and higher tariff rates, could negatively impact earnings. These factors contribute to why Goldman maintains a cautious stance on VF Corp. and the wider sector.
