Nomura Securities Upgrades Hanesbrands (HBI) to Buy

Nomura Securities upgraded Hanesbrands (NYSE: HBI) from Neutral to Buy with a price target of $35.00 (from $30.00).

Analyst Simeon Siegel commented: "We upgrade shares of HBI to Buy from Neutral and raise our TP to $35. In this environment, we value the consistency of a steady LSD organic topline grower that can sidestep the typical volatility of retail and we draw comfort around the more stable/staple nature of HBI’s offering. With 72% Buys, our rating is hardly revolutionary. That said, we flag our Yet-to-be-Realized Synergies & potential refi/buyback analyses below which should help drive incremental EPS. And with a compelling risk/reward at current levels, we see HBI as a multi-year market share (and share price) gainer, leveraging its manufacturing processes, & commitment to improve the product (& drive AUR) through Innovate to Elevate (I to E), further boosted by synergies from prior & future acquisitions, and BS monetization/improvement. FY16E EPS at $1.90; FY17E EPS at $2.14."

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 $29.00 yesterday.

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