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Bull of the Day

Hanesbrands, Inc. (HBI)

July 31, 2009 | Comments: 0
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HBI
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Hanesbrands, Inc. (HBI - Analyst Report) management's business model requires only modest sales growth to create substantial EPS growth. Earnings are being driven by brand-building and cost-reduction initiatives.

Since the spin-off in September 2006, the company has reduced debt by $511 million, lowering interest expense from the post spin-off financial structure. However, management is reporting non-GAAP EPS, which excludes unusual actions, which may be distorting perceived earnings.

The Buy rating is maintained due to valuation. Currently, our six-month target price is $20.50 per share.


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