- CL King & Associates upgraded Hanesbrands Inc (HBI.N) to "strong buy" from "neutral," citing improved outlook for the underwear maker's sales and margin growth in 2010.

Shares of the company rose as much as 13 percent to hit a new 52-week high of $23.10 in morning trade on the New York Stock Exchange.

"Channel checks have indicated that Hanesbrands is gaining shelf space in key innerwear categories and growing in new categories such as the Just My Size rollout of outerwear for spring," analyst Scott Krasik said in a note to clients.

Beyond a return to possible sales growth next year, margins are expected to improve based on the series of restructuring initiatives undertaken since the spin-off from U.S. food maker Sara Lee Corp (SLE.N) in 2006, Krasik said.

The analyst expects the management to have better visibility into potential sales growth next year, and said he will look for comments on more concrete plans for new business during the company's third quarter earnings call.

Krasik said the benefits from organization, consolidation and globalizing of the company's supply chain had been masked by negative sales trends over the last three quarters.

He also initiated a price target of $26 on Hanesbrands' stock.

"Hanesbrands' products are defensive in nature, enabling the company to withstand downturns in consumer spending better than other consumer discretionary companies," Krasik added.

(Reporting by Viraj Nair in Bangalore; Editing by Pradeep Kurup)