RBC Capital initiates Gildan Activewear coverage on Outperform with PT $61.

RBC Capital initiates Gildan Activewear coverage on Outperform with PT $61.

Montreal, July 2, 2025 — RBC Capital (TSX:RY) has initiated coverage on Gildan Activewear Inc. (NYSE:GIL) with an Outperform rating and a price target of $61.00. The move reflects the investment bank's positive outlook on the company's strong execution across its business operations [2].

Gildan Activewear has shown impressive momentum, delivering a 30.57% return over the past year. The company maintains a healthy financial position, supported by consistent dividend payments and aggressive share buybacks. RBC Capital highlighted product innovation as a key driver of market share gains for Gildan, noting this as one of several strengths in the company's current business model [2].

The investment bank also pointed to Gildan's manufacturing expansion in Bangladesh, which it believes will generate further cost efficiencies. RBC Capital expressed confidence in Gildan’s balanced growth strategy and capital return framework, stating the company is "well-positioned to deliver steady value creation" with "no loose threads across its operating model" [2].

In other recent news, Gildan Activewear reported strong second-quarter earnings, with normalized earnings per share reaching $0.97, up from $0.74 in the same period last year. This result exceeded consensus estimates by $0.01. The company also reported revenue of $919 million, surpassing estimates by $13 million and improving from $862 million in the prior-year quarter. Following these results, CFRA raised its price target for Gildan Activewear to C$76.00 from C$65.00, maintaining a Hold rating. Barclays (LON:BARC) also increased its price target to $56.00 from $51.00, while maintaining an Overweight rating. Scotiabank (TSX:BNS) reinstated coverage on Gildan Activewear with a Sector Outperform rating and a price target of $55.00. Analyst John Zamparo highlighted the company’s high margins, return on invested capital, and free cash flow conversion. Despite industry challenges, Gildan’s low-cost structure and advantageous supply chain are expected to help capture market share [2].

Gildan Activewear has declared a quarterly dividend of $0.226 per share, with a dividend yield of 1.8%, payable on September 15th to investors of record on August 21st [3]. Multiple analysts have raised their price targets for Gildan Activewear, with TD Securities increasing it from $56.00 to $60.00 and UBS Group setting it at $70.00, reflecting a strong consensus of a "Buy" rating [3].

References:
[1] https://www.ainvest.com/news/cibc-maintains-outperformer-gildan-activewear-raises-pt-60-56-2508/
[2] https://ca.investing.com/news/analyst-ratings/rbc-capital-initiates-gildan-activewear-stock-with-outperform-rating-93CH-4135942
[3] https://www.marketbeat.com/instant-alerts/filing-bank-of-nova-scotia-raises-position-in-gildan-activewear-inc-nysegil-2025-08-04/