FBR Capital Reiterates an 'Outperform' on Hanesbrands (HBI); FY11 Guidance Reiterated, International Growth Strategy/Opportunity Takes Shape
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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 $36.
FBR analyst says, "Yesterday, Hanesbrands reiterated its FY11 guidance and perhaps, more importantly, initiated its five-year international growth targets, critical in supporting the company's next phase of growth. Annual guidance of $4.9 billion to $5 billion in sales and EPS of $2.70–$2.90 is highly visible, in our view; double-digit sales growth should fuel significant SG&A leverage, while cotton costs for the year are fully known (cotton costs locked in for all of FY11). As we noted post-1Q, 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, thus limiting downside risk, particularly in light of sales momentum. Growth strategies continue to focus on increasing the company's leading position domestically, but international growth opportunities appear to be gaining importance."
For more ratings news on Hanesbrands click here and for the rating history of Hanesbrands click here.
Shares of Hanesbrands closed at $30.21 yesterday.
FBR analyst says, "Yesterday, Hanesbrands reiterated its FY11 guidance and perhaps, more importantly, initiated its five-year international growth targets, critical in supporting the company's next phase of growth. Annual guidance of $4.9 billion to $5 billion in sales and EPS of $2.70–$2.90 is highly visible, in our view; double-digit sales growth should fuel significant SG&A leverage, while cotton costs for the year are fully known (cotton costs locked in for all of FY11). As we noted post-1Q, 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, thus limiting downside risk, particularly in light of sales momentum. Growth strategies continue to focus on increasing the company's leading position domestically, but international growth opportunities appear to be gaining importance."
For more ratings news on Hanesbrands click here and for the rating history of Hanesbrands click here.
Shares of Hanesbrands closed at $30.21 yesterday.
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