Hanesbrands (NYSE:HBI) Strong on Wal-Mart (NYSE:WMT) Strategy

In a tough inflationary apparel market, FBR Capital said after meeting with Hanesbrands' (NYSE:HBI) management they see them as being in a better position than their competitors in a weak economy and rising costs market. They particularly pointed out their apparel strategy with Wal-Mart (NYSE:WMT).

They noted, "Last week, we hosted investor meetings with Hanesbrands' CEO Rich Noll and IR Brian Lantz. Our takeaways from these meetings keep us constructive in the name, as we continue to believe Hanesbrands is relatively better positioned than most to deal with mounting product cost inflation, and therefore, deliver robust earnings growth (+15% to +20% year over year) in FY11. We continue to like the brand's leading position in the basic apparel category (bolstered by Wal-Mart's (NYSE:WMT) apparel strategy of back to basics), where share gains, new programs, the Gear For Sports acquisition, and implemented price increases provide visible top-line growth in uncertain economic conditions."

FBR Capital maintains an "Outperform/Top Pick" rating on Hanesbrands, which closed Monday at $26, down $0.39, or 1.48 percent. FBR has a price target of $34 on them.