Hanesbrands on Tuesday announced the evaluation of strategic options for the global Champion business, and Stifel tells investors in a research note that improvement to the leverage profile from a deal requires an accretive sale price, for which visibility is challenging. The firm, which made no change to its Hold rating or $6 price target, says that assuming a sale of $1.3B, Hanesbrands investors would be left with a business trading at 5.7x EV/EBITDA, net of dissynergies, which the firm views as a fair multiple and sees equity accretion as dependent on Champion fetching an EBITDA multiple north of 8X.
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