Hanesbrands Now Covered by Goldman Sachs (HBI)
The analysts wrote, “We see the HBI investment story evolving from cotton sensitivity to capital allocation over the next 12 months.Gross margins still have a few quarters of upside as the company anniversaries a difficult 2012 for the Outerwear segment. The story only accelerates once that ends, however. The company is expected to prepay the remaining $250 mn of its 2016 senior notes by year‘s end. That event will liberate management to redeploy its 12% free cash flow yield to equity holders. The first order of business is likely a 2% dividend (20-25% of free cash flow). We expect the remaining 75-80% to be distributed through a combination of share buybacks and bolt-on M&A.”
Shares of Hanesbrands (NYSE: HBI) opened at 42.03 on Friday. Hanesbrands has a one year low of $40.49 and a one year high of $42.19. The stock’s 50-day moving average is currently $41.. The company has a market cap of $4.131 billion and a P/E ratio of 25.57.
Hanesbrands (NYSE: HBI) last posted its quarterly earnings results on Tuesday, February 5th. The company reported $1.07 EPS for the quarter, beating the Thomson Reuters consensus estimate of $0.98 by $0.09. The company had revenue of $1.15 billion for the quarter, compared to the consensus estimate of $1.15 billion. During the same quarter in the prior year, the company posted $0.41 earnings per share. The company’s quarterly revenue was up .4% on a year-over-year basis. Hanesbrands has set its FY13 guidance at $3.25-3.40 EPS. Analysts expect that Hanesbrands will post $3.35 EPS for the current fiscal year.
HBI has been the subject of a number of other recent research reports. Analysts at Janney Montgomery Scott raised their price target on shares of Hanesbrands from $45.00 to $47.00 in a research note to investors on Monday, March 11th. They now have a “buy” rating on the stock. Separately, analysts at Zacks reiterated an “outperform” rating on shares of Hanesbrands in a research note to investors on Friday, March 8th. They now have a $47.00 price target on the stock.
One investment analyst has rated the stock with a hold rating and six have given a buy rating to the stock. Hanesbrands has an average rating of “Buy” and an average target price of $44.71.
Hanesbrands Inc. is a consumer goods company with a portfolio of apparel brands, including Hanes, Champion, Playtex, Bali, L’eggs, Just My Size, barely there, Wonderbra, Stedman, Outer Banks, Zorba, Rinbros and Duofold.
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