VF Corp. (NYSE:VFC) shares rose more than 3% in premarket trading Tuesday after Baird upgraded the stock to Outperform from Neutral and raised its price target to $20 from $14.

The brokerage said financial performance was likely to improve sequentially as headwinds at Vans subside. Analysts noted that renewed consumer interest, product innovation, and social media momentum could aid the brand's recovery. In addition, cost-cutting initiatives and free cash flow-driven debt reduction were expected to support financial stability.

Baird added that while the trajectory of skate shoe demand remained uncertain, an inflection at Vans could significantly improve sentiment. The analysts also said the stock's 53% decline from its 52-week highs reflected negative sentiment, limiting near-term downside while creating upside potential if conditions improve into 2026.