Hanesbrands price target raised to $5 from $4.50 at Wedbush

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.