FBR Capital Reiterates an 'Outperform' on Hanesbrands (HBI); Positioned to Deliver Near Term, Long-Term Thesis Intact
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Price: $6.47 --0%
Rating Summary:
9 Buy, 15 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
9 Buy, 15 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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FBR Capital reiterates an 'Outperform' on Hanesbrands (NYSE: HBI), PT $31.
FBR analyst says, "We reiterate our rating and price target on HBI into the company's 1Q print next week (April 20), which we believe could be a catalyst for the shares. Based on higher top-line assumptions, we have tweaked our 1Q11 EPS estimate slightly higher to $0.36 (from $0.35 prior), above consensus of $0.32. Cotton costs for the quarter have been known for some time ($0.83/lb), but as the first round of price increases was implemented on February 1, this report should provide an initial read on price elasticity. Visibility to FY11 fundamentals is decent in our view, as price increases (through back to school) and product costs (through October) are largely known, while guidance prudently embeds the potential negative impact on unit volumes as a result of price increases (particularly in 2H11). We continue to believe Hanes is better positioned than most to deal with product cost inflation, yet should cotton prices continue to roll over (currently $1.80/lb, down from a peak of $2.12/lb in just a week), HBI shares should be a prime beneficiary."
For more ratings news on Hanesbrands click here and for the rating history of Hanesbrands click here.
Shares of Hanesbrands closed at $27.86 yesterday.
FBR analyst says, "We reiterate our rating and price target on HBI into the company's 1Q print next week (April 20), which we believe could be a catalyst for the shares. Based on higher top-line assumptions, we have tweaked our 1Q11 EPS estimate slightly higher to $0.36 (from $0.35 prior), above consensus of $0.32. Cotton costs for the quarter have been known for some time ($0.83/lb), but as the first round of price increases was implemented on February 1, this report should provide an initial read on price elasticity. Visibility to FY11 fundamentals is decent in our view, as price increases (through back to school) and product costs (through October) are largely known, while guidance prudently embeds the potential negative impact on unit volumes as a result of price increases (particularly in 2H11). We continue to believe Hanes is better positioned than most to deal with product cost inflation, yet should cotton prices continue to roll over (currently $1.80/lb, down from a peak of $2.12/lb in just a week), HBI shares should be a prime beneficiary."
For more ratings news on Hanesbrands click here and for the rating history of Hanesbrands click here.
Shares of Hanesbrands closed at $27.86 yesterday.
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