Intel stock extends gains after report of possible U.S. government stake
Investing.com - Wells Fargo has raised its price target on Hanesbrands (NYSE:HBI) to $5.00 from $4.00 while maintaining an Underweight rating following media reports of a potential acquisition. The company, currently valued at $2.19 billion, maintains healthy fundamentals with a current ratio of 1.52 and trades at a P/E multiple of 12.7.
The Financial Times reported that Gildan is nearing a deal to acquire Hanesbrands for approximately $5 billion enterprise value, implying about $8.00 per share, which represents roughly 9.0x EBITDA. A separate Bloomberg report suggested a potential deal at just $6.00 per share, or approximately 7.5x EBITDA. For context, Hanesbrands generated $509.74 million in EBITDA over the last twelve months.
Hanesbrands stock reacted favorably to the news, rising 28% to $6.18 compared to the S&P 500’s 1% gain.
Wells Fargo noted that improvements in Hanesbrands’ debt profile, margins, and cost initiatives, along with potential M&A activity, add risk to the bearish case for the stock.
The bank also pointed to CEO Steve Bratspies’ previously announced departure from the company at the end of 2025 as a factor making the acquisition reports more credible, with the new $5 price target reflecting a 50/50 probability of the deal materializing.
In other recent news, Hanesbrands Inc. reported strong second-quarter 2025 earnings, beating analysts’ expectations with an earnings per share (EPS) of $0.24, compared to the forecasted $0.18. The company’s revenue also exceeded projections, reaching $991 million against a forecast of $969 million. In addition to these positive earnings results, Hanesbrands is reportedly in advanced discussions with Gildan Activewear Inc. for a potential acquisition that could value Hanesbrands at nearly $5 billion, including debt. This deal might be finalized soon, though negotiations are ongoing and could still change.
Analyst firms have responded to these developments with adjustments to their price targets for Hanesbrands. Stifel raised its price target to $6.00 from $5.00, maintaining a Hold rating, citing the company’s strong earnings performance. UBS also increased its price target to $9.00 from $8.00, retaining a Buy rating, due to confidence in Hanesbrands’ turnaround efforts. These recent developments highlight ongoing changes and investor interest in Hanesbrands.
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