Hanesbrands Shares Rise On Upgrade

NEW YORK (AP) — Shares of Hanesbrands Inc. rose on Monday after an analyst said the company is poised for growth in fiscal 2010 and upgraded the stock to "Strong Buy."

Shares rose $2.45, or 12 percent, to close at $22.78. The stock has traded between $5.14 and $22.96 over the past year.

C.L. King analyst Scott Krasik said in a note to investors Monday that the basic nature of Hanesbrands clothes makes it a defensive pick, "enabling the company to withstand downturns in consumer spending better than other consumer discretionary companies."

Store visits have indicated Hanesbrands is gaining shelf space in key innerwear categories and growing in new categories such as Just My Size-branded outerwear.

Restructuring actions the company has undertaken since it spun off from Sara Lee in 2006, such as consolidating the organization and globalizing its supply chain, should also boost results, he said.

He raised his rating to "Strong Buy" from "Neutral" and increased his fiscal 2010 estimate to $1.99 from $1.83. Analysts polled by Thomson Reuters, on average, predict a profit of $1.94 per share.