Hanesbrands upgraded as addition of Walmart vets and brand investment strategy drive momentum

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Hanesbrands Inc. HBI, +0.80% was upgraded to overweight from equal weight at Wells Fargo as optimistic analysts say a turnaround is building momentum. Hanesbrands has brought on a number of former Walmart Inc. WMT, +0.66% veterans in the past nine months, including Chief Executive Steve Bratspies, Chief Financial Officer Michael Dastugue, and Bill Simon, who has joined the Hanesbrands board. And the company is reinvesting in its brands, with marketing spend going up as company leadership discusses divesting non-core assets. Hanesbrands' portfolio includes the namesake brand of underwear and t-shirts, Champion, a brand the company is focused on for growth, and Playtex. "We believe an improved set-up is now taking shape, as we finally have a compelling roadmap on how Hanesbrands plans to improve the operations over the next several years," wrote analysts led by Ike Boruchow. Hanesbrands stock has gained 24.3% for the year to date while the S&P 500 index SPX, +0.14% is up 16.7% for the period.

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