Analyst Paul Lejuez of Citi maintained a Hold rating on Hanesbrands, with a price target of $7.00.
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Paul Lejuez has given his Hold rating due to a combination of factors surrounding the pending merger between Hanesbrands (HBI) and Gildan Activewear (GIL). The merger agreement stipulates that each HBI share will be converted into a fraction of GIL shares, along with a cash component. This conversion has led to an adjustment in the target price for HBI, raising it from $5.50 to $7.00 to align more closely with the target price for GIL.
The expected share price return of 3.6% reflects a modest outlook, suggesting limited upside potential in the near term. Additionally, the earnings per share (EPS) estimates for HBI have not been provided, indicating uncertainty in future earnings performance. These factors combined suggest that while there is some potential for growth, it may not be significant enough to warrant a more aggressive rating than Hold.
In another report released on October 9, Wells Fargo also maintained a Hold rating on the stock with a $6.00 price target.