Sterne Agee Expects Transformational 2010 for Hanesbrands

According to Sterne Agee, Hanesbrands

should be seeing a transformational 2012. Sterne Agee said that HBI is due to report 3Q11 EPS ~10/31; it is estimating 84c (+34% y/y) vs. FC at 82c. "We are modeling sales of $1,344M (+15%, 9% organic), essentially static sequentially despite 2 incremental pricing actions during the quarter. Given the width of prevailing guidance ($2.70-2.90), we believe it is likely that HBI will tighten the range, perhaps reducing the top-end by a few cents. We regard HBI as the most compelling opportunity in our space over the next 12-18 months, with a risk/reward highly skewed to the upside." Hanesbrands closed on Friday at $27.32.