We’ve heard all the rumors that everyone has been quoting lately, and we’re not sure we’d put our money on their lines, but Citi is saying that VF Corp could be a good stock to purchase and they’ve reiterating their “buy” raiting on the stock with a target of $74.
Citi analyst says, “VFC may be close to acquiring skate brand DC Shoes from Quiksilver (NYSE: ZQK), according to WWD reports on Friday. We think this could be a positive acquisition for four reasons:
1) The brand fits well within VFC’s newly created Action Sports Americas coalition, and we think there are opptys to create synergies w/ its Vans & Reef brands, 2) VFC will leverage its global sourcing and distribution to further grow the brand like previous acquisitions; 3) VFC is likely to get an attractive price as a result of market valuations and ZQK’s balance sheet; and 4) We think the deal would be slightly accretive, w/out impacting VFC’s dividend or our est. of ~$200M in repurchases for FY09.”
Since we don’t buy, sell, or own action sports stocks we’re going to sit this one out from the sidelines. VF is up $1.24 right now, but the whole market is up.
[Link: The Street Insider]
