By Christiana Sciaudone
Investing.com -- If there’s one thing people still need in quarantine, it’s underwear. At least, that’s what analysts are betting.
Hanesbrands Inc (NYSE:HBI) jumped 15% after Raymond James upgraded the stock to strong buy from market perform, MarketWatch reported. The price target was set at $20. The stock traded around $14.46 on Wednesday afternoon.
Raymond James said that 25% of Hanesbrand sales come from Walmart (NYSE:WMT) and Target (NYSE:TGT), and those stores are “trading near all time high valuation levels which indicates that the market believes they are retail winners and that likely implies their largest vendor partners should also be winners."
Hanesbrand also stands to benefit from solid distribution among major retailers and the struggle of other competitors, such as L Brands Inc (NYSE:LB)' Victoria Secret, which is closing 250 stores.
Bank of America (NYSE:BAC) also boosted its view on Hanesbrand, upgrading it to neutral from underperform, according to Seeking Alpha, citing new leadership and greater demand for comfortable apparel.
The company has one buy rating, two holds and two sells, according to data compiled by Investing.com, with an average price target of $9.80.
Shares are up the most since February, and have doubled since March.