UPDATE: Stifel Nicolaus Raises PT to $43 on Hanesbrands on Sustainable Profitability Trends

Stifel Nicolaus maintained Hanesbrands HBI with a Buy rating and raised the price target from $40.00 to $43.00. Stifel Nicolaus commented, "Ultimately, we expect shares react favorably to the increased free cash flow guidance and improving visibility to continued balance sheet improvement. FCF yield (at current price, 10.4% our FY13 estimate, and 9.1% at $350mn – low end of management's targeted FCF range). We expect investors will give credit for a normalized rate of FCF of $350mn-$400mn that can go to accretive acquisitions and/or returned to shareholders through share repurchases and dividends." Hanesbrands closed at $38.18 on Tuesday.