Gildan Activewear: National Bank Raises Price Target to $86, Maintains Outperform Rating

National Bank raises Gildan Activewear's price target to $86, maintains Outperform rating. Gildan is a vertically integrated manufacturer of basic apparel, including activewear, underwear, and hosiery products. The company markets its products under various brands in North America, Europe, Asia Pacific, and Latin America. Its manufacturing operations are located in the US, Central America, the Caribbean, and Bangladesh.

National Bank has recently raised its price target for Gildan Activewear (GIL) to $86, maintaining an "Outperform" rating. The decision comes on the heels of several strategic moves by the vertically integrated manufacturer of basic apparel, including activewear, underwear, and hosiery products. Gildan markets its products under various brands in North America, Europe, Asia Pacific, and Latin America, with manufacturing operations in the US, Central America, the Caribbean, and Bangladesh.

One of the key moves was the selection of S&S Activewear as the exclusive wholesale distributor of Gildan's portfolio of brands in the Canadian imprintables market [1]. This partnership, effective December 28, is expected to enhance Gildan's market reach and operational efficiency.

Additionally, Gildan has announced the acquisition of HanesBrands (HBI) in a cash-and-stock deal valued at approximately $2.2 billion [2]. The acquisition aims to bolster Gildan's product offerings and consumer reach. The deal, which includes a premium of 24% over HanesBrands' closing price on Monday, is expected to close later this year or in early 2026 [3]. Gildan anticipates the acquisition to be immediately accretive to its adjusted per-share earnings and add 20% to the metric on a pro forma basis [3]. The company also projects annual run-rate cost synergies of at least $200 million within three years [4].

Gildan's Chief Executive Glenn Chamandy stated, "With this transaction, our revenues will double and we achieve a scale that distinctly sets us apart. The combination with HanesBrands strengthens our positioning with an opportunity to expand the heritage 'Hanes' brand presence in activewear across channels, while enhancing Gildan's retail reach for its portfolio of brands" [3].

The acquisition of HanesBrands is expected to provide Gildan with a stronger financial and operational foundation, opening new growth opportunities. The combined company will maintain a strong presence in both Montreal and Winston-Salem, North Carolina.

Gildan's strategic moves have been well-received by the market, with the company's shares rising on the New York stock exchange following the announcement. The company's full-year 2025 outlook remains unchanged, with adjusted EPS expected to be in a range of $3.40 to $3.56 and revenue to be up by mid-single digits [3].

References:
[1] https://www.tipranks.com/news/the-fly/gildan-activewear-selects-ss-activewear-as-wholesale-distributor-thefly
[2] https://baynews9.com/fl/tampa/news/2025/08/13/canada-s-gildan-activewear-is-buying-north-carlina-based-hanesbrands-for--2-2-billion
[3] https://finance.yahoo.com/news/gildan-activewear-strikes-2-2-132132140.html
[4] https://www.marketscreener.com/news/gildan-activewear-brief-gildan-says-proven-operational-model-expected-to-enable-realization-of-at-ce7c51dbdc89f62d