2023-04-28 08:21:42 ET
Hanesbrands ( NYSE: HBI ) could post a better-than-feared print next week, according to Citi analyst Paul Lejuez.
He told clients that a positive report could jolt the stock higher given its high short interest. While he expects in-line EPS, he expects the company could do enough with guidance to reassure the market and spark a big reaction.
“The stock is very unloved with short interest at a high, driven by the business truly struggling and being highly levered, but we aren’t looking for a miss in 1Q and 2Q may not be as bad as consensus is looking for,” Lejuez advised. “Management guiding 2Q23 above consensus could be a positive surprise for this highly shorted stock with low expectations; we are opening a 30-day positive catalyst watch.”
Shares of Hanesbrands ( HBI ) trended flat in premarket trading.
Dig into the earnings expectations for Q1 .
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Citi opens positive catalyst watch on Hanesbrands