03:35 PM EDT, 07/24/2024 (MT Newswires) -- Hanesbrands' ( HBI ) 2024 guidance, excluding its Champion brand's 30% sales contribution, probably will spur stock price volatility, UBS Securities said Wednesday in a report.

"We anticipate Hanesbrands ( HBI ) will give new retroactive financials removing Champion's results so investors can compare current trends to prior periods on a like-for-like basis," UBS said, "The key is we see a wide range of outcomes around how the market perceives fundamental trends, ex-Champion."

Hanesbrands ( HBI ) is likely to report Q2 operating results consistent with expectations, including contributions from Champion, industry feedback suggests, the report said.

Despite high short interest, investor feedback appears slightly more optimistic, UBS said.

"We believe the market views the Champion sale as a positive for the stock because it will allow the company to use the proceeds to reduce leverage and focus on growing the innerwear business," UBS said.

UBS has a neutral rating on Hanesbrands ( HBI ) with a 12-month price target of $5.

Hanesbrands ( HBI ) shares fell 0.1% in recent trading Wednesday.

Price: 5.36, Change: -0.01, Percent Change: -0.09