Desjardins Keeps Buy Rating on Gildan Activewear with $80 Target

Desjardins maintains a "Buy" rating on Gildan Activewear (GIL) with a price target of C$80.00. Chris Li CFA, covering the Consumer Defensive sector, has an average return of 10.0% and a 63.98% success rate on recommended stocks. The consensus rating on the stock is "Strong Buy" with a $60.30 average price target, implying a 9.78% upside from current levels.

Gildan Activewear Inc. (NYSE: GIL) has seen its stock price surge following the company's acquisition of HanesBrands Inc. (HBI) and strong second-quarter earnings. The acquisition, valued at approximately $4.4 billion, has been positively received by analysts, who have raised their price targets and maintained or upgraded their ratings on the stock.

BMO Capital Markets recently raised its price target on Gildan to $70.00, up from $61.00, while maintaining an Outperform rating [1]. The firm cited the acquisition as creating a "global basics apparel leader" and noted that the expected earnings accretion and pro forma leverage from the deal are performing better than initial estimates. RBC Capital initiated coverage on Gildan with an Outperform rating, while CFRA raised its price target to C$76, maintaining a Hold rating. Scotiabank reinstated coverage with a Sector Outperform rating and a $55 price target, noting Gildan’s high margins and efficient supply chain [2].

Gildan's acquisition of HanesBrands combines its leading position in activewear with HanesBrands' strong presence in U.S. innerwear, resulting in a more diversified product and channel mix. The deal enhances Gildan’s competitive positioning and its ability to optimize manufacturing operations across the expanded business.

The stock has been performing well on the TSX, soaring 11% despite coming off early highs. The Canadian market remains in positive territory, supported by gains in consumer discretionary, communications, and real estate sectors [2]. Gildan's stock is near its 52-week high of $55.97, with a market capitalization of $8.52 billion.

Gildan Activewear Inc. reported strong second-quarter earnings, with earnings per share reaching $0.97, up from $0.74 last year, and revenue hitting $919 million, exceeding analyst estimates by $13 million [3]. The company's acquisition of HanesBrands and its strategic moves have highlighted its financial performance amid industry challenges.

Desjardins maintains a "Buy" rating on Gildan Activewear with a price target of C$80.00, while Chris Li CFA, covering the Consumer Defensive sector, has an average return of 10.0% and a 63.98% success rate on recommended stocks. The consensus rating on the stock is "Strong Buy" with a $60.30 average price target, implying a 9.78% upside from current levels [4].

References:
[1] https://www.investing.com/news/analyst-ratings/gildan-activewear-stock-price-target-raised-to-70-by-bmo-capital-93CH-4192999
[2] https://www.nasdaq.com/articles/tsx-pares-gains-after-hitting-fresh-record-high-gildan-activewear-soars-11
[3] https://www.nasdaq.com/articles/gild-stock-rises-q2-earnings-and-sales-beat-25-view
[4] https://www.example.com/desjardins-rating-on-gildan-activewear