FBR Capital Reiterates an 'Outperform Hanesbrands (HBI); Strong 1Q Beat, Guidance Raised; Risk/Reward Still Favorable
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Price: $6.47 --0%
Rating Summary:
9 Buy, 15 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 22
Rating Summary:
9 Buy, 15 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 22
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FBR Capital reiterates an 'Outperform Hanesbrands (NYSE: HBI), raises PT to $36.
FBR analyst says, "While we thought there was potential upside to the quarter, the magnitude of the beat was impressive, driven by better-than-expected sales and margins as the company executes exceptionally an all fronts in the face of inflationary headwinds. Innerwear trends were flat in the quarter, as the year-over-year compare was stiff (new 1Q10 programs), and price increases did not hit until February—this category will be critical in assessing demand elasticity as the year progresses. We think visibility to doubledigit sales growth is decent, fueling significant SG&A leverage, while cotton costs for the year are fully known (cotton costs locked in for all of FY11). The impact of more significant price increases flowing through to consumers in the back half remains unknown; however, we believe that guidance embeds conservative demand elasticity assumptions, and with an apparent reacceleration in consumer spending and effective marketing by Hanes, the downside risk is limited in our view."
For more ratings news on Hanesbrands click here and for the rating history of Hanesbrands click here.
Shares of Hanesbrands closed at $30.99 yesterday.
FBR analyst says, "While we thought there was potential upside to the quarter, the magnitude of the beat was impressive, driven by better-than-expected sales and margins as the company executes exceptionally an all fronts in the face of inflationary headwinds. Innerwear trends were flat in the quarter, as the year-over-year compare was stiff (new 1Q10 programs), and price increases did not hit until February—this category will be critical in assessing demand elasticity as the year progresses. We think visibility to doubledigit sales growth is decent, fueling significant SG&A leverage, while cotton costs for the year are fully known (cotton costs locked in for all of FY11). The impact of more significant price increases flowing through to consumers in the back half remains unknown; however, we believe that guidance embeds conservative demand elasticity assumptions, and with an apparent reacceleration in consumer spending and effective marketing by Hanes, the downside risk is limited in our view."
For more ratings news on Hanesbrands click here and for the rating history of Hanesbrands click here.
Shares of Hanesbrands closed at $30.99 yesterday.
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