Zacks Investment Research downgraded shares of Hanesbrands Inc (HBI) from OUTPERFORM to NEUTRAL on January 23, 2015, with a target price of $119.00.
We return to a Neutral recommendation from Outperform on Hanesbrands Inc. following its slightly soft third-quarter fiscal 2014 results. Although earnings per share of $1.73 improved 44% from the year-ago results and beat the Zacks Consensus Estimate by a penny driven by higher nmargins, sales missed the consensus mark by 1%.Sales increased 17% from the year-ago results, but currency continued to affect the top line. Overall, we remain encouraged with the company's favorable pricing and successful implementation of the margin boosting Innovate to Elevate strategy. Hanesbrands continues its strategic acquisitions and the recent DBApparel takeover prompted it to raise the fiscal 2014 outlook. However, we remain cautious about the slowdown in the business momentum of the company.
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