Hanesbrands: Hold Rating Reflects Balanced Risk-Reward Amid Cautious Optimism

Citi analyst Paul Lejuez maintained a Hold rating on Hanesbrands (HBI – Research Report) today and set a price target of $9.00.

Paul Lejuez has given his Hold rating due to a combination of factors influencing Hanesbrands’ prospects. While there is an expectation of positive developments, such as potential earnings per share (EPS) guidance exceeding current consensus estimates, the overall outlook suggests a balanced risk-reward scenario for investors. The anticipated improvements in gross margins, driven by lower product costs, and the cost savings following the sale of the Champion brand contribute to a cautiously optimistic view.
Despite these positive catalysts, the Hold rating indicates that while there may be some upside potential, it is not compelling enough to justify a more aggressive Buy rating. This suggests that investors should maintain their current positions and await further evidence of sustained performance improvements before making significant new investments. As such, the rating reflects a wait-and-see approach, acknowledging both the potential for growth and the uncertainties that remain.