Gold bars to be exempt from tariffs, White House clarifies
Investing.com - Stifel raised its price target on Hanesbrands (NYSE:HBI) to $6.00 from $5.00 on Friday, while maintaining a Hold rating following the company’s second-quarter earnings report. The apparel manufacturer, currently trading at $4.65 with a market capitalization of $1.64 billion, has shown strong momentum with a 14.25% gain over the past week, according to InvestingPro data.
The apparel manufacturer reported second-quarter revenue and adjusted earnings per share that exceeded Stifel’s estimates, with revenue beating by $21.2 million and adjusted EPS coming in $0.06 above expectations. The earnings outperformance was primarily driven by top-line strength, while adjusted EBIT margins for the quarter were in line with forecasts. InvestingPro analysis shows the company maintains healthy liquidity with a current ratio of 1.55, suggesting strong ability to meet short-term obligations.
Hanesbrands’ cost savings and productivity initiatives continued to benefit its gross margin, which improved 150 basis points year-over-year in the second quarter, reaching 41.71%. The company raised its full-year 2025 adjusted EPS guidance to $0.66, an increase of $0.13 at the midpoint compared to previous forecasts. Get deeper insights into HBI’s financial health and growth potential with InvestingPro, which offers exclusive analysis and 8 additional ProTips for this stock.
Stifel noted that Hanesbrands’ fiscal year 2025 outlook continues to reflect full mitigation of tariffs, with the company’s lack of China sourcing exposure positioning it favorably relative to peers in the current macroeconomic environment.
Despite the positive earnings results, Stifel maintained its Hold rating, citing difficult category trends and a more challenging second half that continue to impact the top-line outlook, leading the firm to view the stock’s risk-reward profile as balanced. According to InvestingPro’s Fair Value analysis, the stock appears slightly undervalued at current levels, with a Financial Health Score rated as FAIR.
In other recent news, Hanesbrands reported its second-quarter 2025 earnings, exceeding analysts’ expectations. The company posted an earnings per share (EPS) of $0.24, surpassing the forecasted $0.18, which represents a 33.33% surprise. Additionally, Hanesbrands’ revenue outperformed projections, reaching $991 million compared to the anticipated $969 million. UBS responded to these results by raising its price target for Hanesbrands from $8.00 to $9.00, maintaining a Buy rating. The investment firm expressed increased confidence in the company’s ongoing turnaround efforts, particularly in its core innerwear business. These developments reflect positive momentum for Hanesbrands as it continues to execute its strategic initiatives.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.