UBS raises Hanesbrands stock price target to $9 on turnaround progress

Published 08/08/2025, 12:24
UBS raises Hanesbrands stock price target to $9 on turnaround progress

Investing.com - UBS raised its price target on Hanesbrands (NYSE:HBI) to $9.00 from $8.00 while maintaining a Buy rating following the company’s second-quarter results. According to InvestingPro data, the stock has shown strong momentum with a 14.25% gain over the past week, though it remains well below its 52-week high of $9.10.

The investment firm cited increased confidence in Hanesbrands’ ongoing turnaround efforts, which it believes will drive improved growth in the company’s core innerwear business.

UBS noted that Hanesbrands is operating a more simplified business model, which should enable better long-term earnings potential compared to its previous structure.

The firm also highlighted Hanesbrands’ favorable positioning relative to other softlines companies in navigating potential tariff challenges, adding another element of strength to its investment thesis.

UBS forecasts approximately 20% annualized long-term earnings per share compound annual growth rate from fiscal year 2024 through 2029, and expects positive EPS surprises over the next twelve months to drive both Street estimates and the stock’s price-to-earnings ratio higher.

In other recent news, Hanesbrands Inc. reported its second-quarter 2025 earnings, surpassing analysts’ expectations. The company achieved an earnings per share (EPS) of $0.24, exceeding the forecasted $0.18, which represents a 33.33% surprise. Additionally, Hanesbrands’ revenue outperformed projections, reaching $991 million compared to the anticipated $969 million. These results highlight a strong financial performance for the company in the quarter. The earnings announcement was followed by a notable increase in the company’s stock. Analysts had projected more modest results, making the actual figures a positive development for investors. There were no recent updates on mergers or acquisitions involving Hanesbrands. Analyst firms have not provided any recent upgrades or downgrades for the company.

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