Hanesbrands News: Why HBI Stock Is Slumping 4% Today

Hanesbrands (NYSE:HBI) is seeing HBI stock drop on Friday following a downgrade from a Bank of America Merrill Lynch analyst.

Hanesbrands News: Why HBI Stock Is Slumping 4% Today

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The bad Hanesbrands news comes from Bank of America Merrill Lynch’s Heather Balsky. She takes the stock down from its previous “Neutral” rating to a new rating of “Underperform.”

It isn’t just a downgrade that is bad Hanesbrands news. There’s also a new price target of $13 from Balsky. That’s 18.75% lower than the previous price target of $16 per share for HBI stock. It’s 14.36% lower than the stock’s closing price of $15.18 on Thursday. This also places it below the average price target of $18.36 for the stock.

So what’s up with the bearish stance on HBI stock? The following is what the Bank of America Merrill Lynch analysts writes in a note obtained by CNBC.

“We see risk of multiple contraction as Champion sales decelerate from peak levels and the C9 exit from Target constrains 2020 sales and EPS growth.”

It’s worth pointing out that Balsky is alone in her negative view of HBI stock. 14 other analysts are covering the stock and none of them have a bear outlook. Instead, five of them have a “Neutral” rating and the remaining nine are sticking with a “Buy” rating for the stock.

HBI stock was down 3.99% as of Friday afternoon. The stock is currently up 19.81% since the beginning of the year.

As of this writing, William White did not hold a position in any of the aforementioned securities.

Article printed from InvestorPlace Media, https://investorplace.com/2019/12/hanesbrands-news-drops-hbi-stock/.

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