:max_bytes(150000):strip_icc()/INV_HanesbrandOutlet_GettyImages-1289252846-321f84cdfff1400d9dc118c52ea2d1e9.jpg?w=1024&resize=1024,1024&ssl=1 "UBS Lifts Price Target on Hanesbrands, Says Company Is at ‘Inflection Point’")
Key Takeaways
- UBS lifted its price target on Hanesbrands, saying the apparel maker could be at an “inflection point.”
- UBS analyst Jay Sole increased the company’s price outlook to $6.50 from $5.
- Sole is quoted as saying Hanesbrands will likely benefit from more spending on product development and marketing, as well as the sale of its Champion brand.
Shares of Hanesbrands (HBI) gained Tuesday after UBS boosted its price target on the stock to $6.50 from $5 while maintaining a “neutral” rating.
CNBC reported that UBS analyst Jay Sole wrote that the apparel maker could be at “a major inflection point” as Chief Executive Officer (CEO) Stephen Bratspies has increased spending on product innovation and marketing.
In addition, the sale of Hanesbrands’ Champion business is scheduled to close before the end of the year, and that could put the company’s earnings before interest and taxes (EBIT) margin at 15%, CNBC reported. The $1.2 billion deal with Authentic Brands Group was announced in June.
UBS Watching for Strategic Execution
CNBC quoted Sole as saying that after meeting with management, “we believe HBI has an opportunity to flip the narrative around the stock for the first time in many years.” However, he kept the company’s stock rating at neutral until Hanesbrands shows it can execute its strategy.
Hanesbrands shares traded Tuesday at their highest level since early 2023, rising 5.7% to $6.65 at close.
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