Wedbush raised the firm’s price target on Hanesbrands (HBI) to $5 from $4.50 and keeps a Neutral rating on the shares. The firm notes WWD reported that Hanesbrands has reached a deal to sell the Champion brand to Authentic Brands Group (AUTH) for “a little more than $1 billion,” with a formal agreement set to be announced sometime in the coming weeks. The deal price would be below the $1.4B figure that WWD states Hanesbrands was seeking. Wedbush believes that Hanesbrands would benefit from having a focus purely on Innerwear/Intimates, as it is a higher-margin business, it is far more staple-like than Champion, and it is also a less competitive category in its view. On the flip side, Hanesbrands isn’t exactly selling from a position of strength, as brand revenues have declined almost 35% domestically and almost 30% globally over the past two years combined.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on HBI:
- M&A News: Champion Sale Devastates Hanesbrands (NYSE:HBI), Shares Sink 10%
- Hanesbrands signs three year extension with University of Mississippi
- What Lies Ahead for Hanesbrands (NYSE:HBI)? Wait to Find Out
- Hanesbrands price target lowered to $4.50 from $5 at Citi
- Hanesbrands price target lowered to $4 from $5 at Barclays