Barclays Maintains an 'Equalweight' on Hanesbrands (HBI); Meetings with Management

Barclays maintains an 'Equalweight' on Hanesbrands (NYSE: HBI) price target of $35.00.

Barclays analyst said, "This morning (11/10) we met with members of the Hanesbrands management team, CFO Rick Moss and Executive Director of Investor Relations Charlie Stack. The company provided further detail into the mechanics of cotton delivery and how this will impact the timing of the lower cost cotton flowing through the P&L. At the start of a crop year in Nov, the company locks in availability for a portion of their cotton to be delivered at certain times. The company then buys futures against contracts for Dec, Mar, May and Jul. The July contract (delivered Jun-Sep) represents the largest portion of cotton for the year, and in 2011 contained the highest cost cotton. Following delivery, manufacturing occurs over six to nine months. The lower cost cotton, which is in early manufacturing stages, will therefore not flow through COGS and inventory until 2H12."

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 $25.00 yesterday.

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