Sterne Agee Meets With Hanesbrands Management, Maintains Buy Rating

Sterne Agee has published a research report on Hanesbrands, Inc. (NYSE: HBI) after meeting with company management in Dallas recently.

In the report, Sterne Agee writes "As expected, the integral issue in all meetings was invariably pricing power. Other recurring themes include: 1) price elasticity assumptions, 2) cash flow and capital deployment, 3) Nanjing facility and Asian Hub, 4) internal outlook for cotton, 5) potential market share opportunities, and 6) structural changes produced by '11 inflation. Management has maintained their sanguine view on the significant input cost pressures even as cotton continues to run and anticipates exiting the year with a more proven business model."

Sterne Agee maintains its Buy rating and $26 price target.

Hanesbrands, Inc. closed Friday at $26.06.