UPDATE: D.A. Davidson Reiterates Buy Rating, Raises PT on Hanesbrands
In a report published Friday, D.A. Davidson & Co. reiterated its Buy rating on Hanesbrands (NYSE: HBI), and raised its price target from $42.00 to $50.00.
D.A. Davidson noted, “Strong cash flow enables accelerated debt pay down schedule. HBI announced its intention to prepay $250 million of its $500 million 8% 2016 notes this December. Previous guidance called for the entire $500 million to be retired in December 2013. The company still plans on retiring the remaining $250 million in 2013. HBI will incur a pre-tax charge of $34 million in 4Q for bond prepayment expenses and acceleration of noncash unamortized debt costs. On lower interest expense, 2013 EPS guidance was raised from the low $3 range to $3.25-$3.40. 2013 interest expense is expected to be $120 million, including $15 million in prepayment expenses related to the remaining $250 million 8% 2016 notes that will be paid off in December 2013.”
Hanesbrands closed on Thursday at $35.74.
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