Hanesbrands Inc. (NYSE:HBI) a Buy: D.A. Davidson

In a research note issued to investors, Andrew Burns at D.A. Davidson Upgraded Hanesbrands Inc. (NASDAQ:HBI) to a Buy. The analyst placed a $37.00 price target on the stock which indicates a 15.19% upside to the last closing price. In the year following Burns’s ratings, the stocks covered yield an average return of 10.7% according to TipRanks.com. In the past year 38 out of 56 recommendations or 68% were successful.

There are 10 research firms in total that have issued ratings on Hanesbrands Inc. (NYSE:HBI) within the past year. The consensus, or mean target price of the Wall Street analysts covering the firm is $37.4. The most recent revision to the consensus target was on 2015-05-16. Analysts are predicting that Hanesbrands Inc. (NYSE:HBI) will report $0.5 earnings per share when they next issue their quarterly earnings release on or around 2015-07-22.

The consensus mean estimate is the calculated mean of all brokerage sell-side analysts that issue earnings estimates for the company. In the most recent quarter the company reported earnings of $0.22 that ended on 2015-03-31. Hanesbrands Inc. (NYSE:HBI) has a 1.23 consensus analyst rating on the stock based on an arithmetical average of the 10 ratings given by the brokerage analysts covering the company. This number is based on a 1 to 5 scale where 1 indicates a Strong Buy recommendation while 5 represents a Strong Sell. The highest estimate of the 10 covering analysts sees the stock climbing to $42 within the next year while the lowest estimate places the 12-month target price at $31.5.

Looking ahead to full year estimates, analysts have placed the consensus earnings per share estimate for the current year at $1.71. The most bullish analyst sees the company reporting earnings per share of $1.81 while the most bearish analyst is predicting a current year EPS number of $1.58. Looking further ahead to the next three to five years, the long term EPS growth rate on a consensus basis is 13.45%, based on the 2 analysts providing longer term projections in their models.

Hanesbrands Inc. is a consumer goods company with a portfolio of apparel brands, including Hanes, Champion, Bali, Playtex, Just My Size, L’eggs, barely there, Wonderbra, Gear for Sports, Stedman, Zorba, Rinbros, Sol y Oro, Outer Banks and Duofold. The Company designs, manufactures, sources and sells a range of basic apparel, such as T-shirts, bras, panties, men’s underwear, kids’ underwear, casualwear, activewear, socks and hosiery. The Company operates in five segments: Innerwear, Outerwear, Hosiery, Direct to Consumer and International. The Hanes brand covers all of its product categories, including men’s underwear, kids’ underwear, bras, panties, socks, T-shirts, fleece and sheer hosiery. Bali is the brand within its portfolio, offering a range of bras, panties and shapewear sold in the department store channel. In October 2013, the Company announced that it has closed the acquisition of Maidenform Brands, Inc.