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Hanesbrands stock seen rising further on new products-Barron's
April 28, 2013 / 5:30 PM / 5 years ago

Hanesbrands stock seen rising further on new products-Barron's

NEW YORK, April 28 (Reuters) - Shareholders of Hanesbrands should reap further gains as the U.S. clothing maker is expected to earn more from new higher-priced products and lower costs on cotton and interest payments, Barron’s said in its April 29 edition.

Wall Street analysts projected Hanesbrands, known for its basic T-shirts and underwear, will make $3.45-a-share in 2013, a 32 percent rise from a year ago. They anticipated a 16 percent increase in 2014, the paper said.

“With that growth, if the stock’s price-to-earnings ratio nudges close to 15 over the next year, stockholders should secure a 20 percent gain,” it said.

The company also introduced a quarterly dividend of 20 cents a share, which will begin on June 3.

Hanesbrands shares closed up 0.15 percent on Friday at $49.16, near their 52-week high of $50.00. The stock has risen 37.2 percent so far this year, surpassing the 11-percent gain for the Standard & Poor’s 500 index, the paper noted.

On Tuesday, the company reported its first quarter results with a surge in operating profit to $85.1 million from $10.6 million a year earlier. However, its sales dipped 3 percent to $945.5 million.

“The up-market move has given some shoppers pause,” Barron’s said, adding, “Free cash flow is surging.”

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