HanesBrands (HBI) to Report 3Q Results on 10/28; UBS Reiterates Buy
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Rating Summary:
8 Buy, 15 Hold, 1 Sell
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UBS reiterated a Buy rating and $42.00 price target on Hanesbrands (NYSE: HBI) ahead of the company's 3Q15 earnings results. Analyst Michael Binetti is forecasting 3Q EPS of $0.45 (Street: $0.45). HBI is scheduled to release its 3Q results on 10/28.
Binetti commented, "HBI has underperformed the S&P by -11pp since reporting earnings amid renewed fears of increasing vendor pressure from WMT. That said, industry media reference a June WMT meeting to discuss lower prices from vendors—which should've already been reflected on HBI's 7/30 earnings call and 9/9 industry conference. That said, WMT could push suppliers to pass on manuf. savings from recently depreciating Asian currencies. Even if WMT asks for a 3% price cut (roughly the amount of RMB devaluation), we est HBI has more than enough levers to offset the incremental EBIT pressure (see below). Importantly, at just 14.5x our '16E EPS today (vs a 15.7x 3-yr avg), we believe HBI's stock isn't assigning any credit for future M&A (we have high conviction that HBI will acquire in '16 given mgmt commentary). We believe the stock reaction is overdone. Reiterate Buy."
For an analyst ratings summary and ratings history on Hanesbrands click here. For more ratings news on Hanesbrands click here.
Shares of Hanesbrands closed at $27.06 yesterday.
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