Stifel Reiterates Hold Rating on Hanesbrands (HBI)

Stifel analyst Jim Duffy reiterated a Hold rating and $6.00 price target on Hanesbrands (NYSE: HBI).

The analyst commented: "We are updating our HBI model to reflect disclosure following the 9/30/24 completed sale of the global Champion business to Authentic Brands Group. Model adjustments are related incremental disclosure regarding Champion Japan royalty expenses, debt issuance cost treatment, as well as a pro forma presentation of the most recent balance sheet. With the press release, the Company reaffirmed expectations to paydown ~$1bn of debt in 2H24 (including proceeds from the Champion sale) and expectations to generate strong shareholder returns over the “next several years” through topline growth, margin expansion, double-digit earnings per share growth, and further deleveraging of the balance sheet. We see a path for net leverage approaching closer to 3x levels by FY25 year-end, though execution remains a risk. We remain comfortable at HOLD and our $6 TP reflects 8x EV/EBITDA on our FY25E of $521.6mn."

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 $6.91 yesterday.

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