UPDATE: Sterne Agee Starts Hanesbrands (HBI) at Buy

Sterne Agee initiated coverage on Hanesbrands (NYSE: HBI) with a Buy rating and a price target of $38.00. Analyst Ike Boruchow thinks core strength and its compelling M&A model will drive EPS growth.

"Through a combination of modest growth within its "core" business (stable, strong FCF generation) and a refined M&A model (potential to add ~$1.00 in EPS over the next 3-5 years), HBI has one of the most compelling long-term stories in our universe. Utilizing its competitive advantages in branding, platform innovation, and global supply chain, HBI will continue to drive sales and margin expansion within its core operations. Importantly, these principles help create unrivaled synergies and accretion for current and future bolt-on acquisitions, producing a growth story hidden within a stable/defensive business model," said Boruchow.

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 $32.61 yesterday.

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