Stifel Nicolaus analyst Peter McGoldrick maintained a Hold rating on Hanesbrands yesterday and set a price target of $6.00.
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Peter McGoldrick has given his Hold rating due to a combination of factors surrounding Hanesbrands. The company is currently in advanced acquisition talks with Gildan Activewear, which could potentially value Hanesbrands at $4.5 billion to $5 billion. This acquisition could bring about significant synergies, estimated at $200 million, due to the complementary nature of the two companies’ businesses. However, the lack of clarity regarding the deal’s structure and terms has led to a cautious approach.
Hanesbrands faces challenges as a standalone entity, such as limited growth prospects and a substantial debt burden, which have hindered its value generation in the public market. While the potential acquisition could unlock value through strategic synergies, the current market sentiment towards Hanesbrands’ shares remains dismissive. Therefore, McGoldrick maintains a Hold rating with a target price of $6, reflecting the company’s fundamentals and the uncertainties surrounding the acquisition outcome.
According to TipRanks, McGoldrick is a 2-star analyst with an average return of 0.8% and a 33.33% success rate. McGoldrick covers the Consumer Cyclical sector, focusing on stocks such as Kontoor Brands, Fox Factory Holding, and Columbia Sportswear.
In another report released today, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $6.50 price target.