UBS not bullish on Hanesbrands potential divestiture of Champion

UBS is not bullish on Hanesbrands’ possible divestiture of Champion. The firm does not see a catalyst which will cause the stock’s valuation to rise meaningfully. While a potential asset divestures could boost Hanesbrands’ stock price and reduce its debt burden, the UBS Evidence Lab’s 2023 global athletic wear survey suggests Champion is not a leading athletic apparel brand, the analyst tells investors in a research note. The firm says the survey reinforces its view that Hanesbrands will probably not receive a price for Champion which would be a major positive catalyst for the stock. UBS keeps a Neutral rating on the shares with a $4.50 price target.