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Hanesbrands: Analyst Targets Steady, But Growth Concerns Loom
27 Nov
Summary
- Analyst price target for Hanesbrands remains unchanged at $6.55.
- TD Securities sees growth acceleration potential for Hanesbrands with Gildan.
- Third quarter outlook for Hanesbrands shows less investor excitement.
Hanesbrands' stock has seen its consensus analyst price target hold steady at $6.55, indicating a period of reassessment by experts. While the discount rate has slightly decreased, forecasts for revenue growth have experienced a notable dip. This suggests a cautious sentiment as the company navigates evolving market conditions.
TD Securities has expressed optimism regarding Hanesbrands' potential, particularly in conjunction with Gildan Activewear. Analysts highlighted the compelling platform created by combining North America's activewear leader with the retail innerwear leader, forecasting accelerated EPS growth and robust free cash flow generation. TD Securities even raised its price target for Gildan Activewear to $73, maintaining a Buy rating.
Despite the long-term growth thesis, TD Securities also voiced reservations about Hanesbrands' near-term prospects. The firm noted that the third quarter outlook is less exciting for investors, with its Q3 EPS estimate of $0.96 falling slightly below consensus. This indicates lingering concerns about immediate earnings momentum.
