Shares of Gildan Activewear (TSE: GIL) (NYSE: GIL) have witnessed a volatile trend since the start of 2022. This is despite having acquired Phoenix Sanford, the parent company of one of its major suppliers, and outstanding fourth-quarter financials. GIL stock is down over 9% year-to-date.
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The stock declined by ~2.6% on Wednesday, breaking the multi-day winning streak, perhaps on news that the compensation of Gildan’s CEO, Glenn J. Chamandy, for 2021 was reduced by 30% due to the absence of stock option awards.
Further, reports note that Chamandy sold 42,759 shares of the company at an average price of C$47.61.
Based in Montreal, Canada, Gildan engages in the manufacturing and selling of printwear and branded apparel. Its products include activewear, underwear, socks, hosiery, and legwear.
Analysts Remain Bullish
On March 30, Desjardins analyst Chris Li CFA reiterated a Buy rating on the stock with a price target of $50.38 (30.8% upside potential).
Li said, “We believe market share gains are sustainable, driven by GIL’s attractive price gap and vertical integration (low cost and access to yarn). While macro concerns could remain a near-term overhang, we maintain our positive long-term view.”
Also, BMO Capital analyst Stephen Macleod maintained a Buy rating on Gildan with a price target of $51. The price target implies 32.4% upside potential from its current price.
Turning to Wall Street, Gildan has a Strong Buy consensus rating based on seven unanimous Buys. The average Gildan Activewear price target of $51.66 implies 34.1% upside potential from current levels.
Blogger Opinions
TipRanks data shows that financial blogger opinions are 100% Bullish on GIL, compared to the sector average of 69%.
Additionally, according to TipRanks’ Smart Score system, Gildan earns a 7 out of 10 rating, which indicates that the stock is likely to perform in line with market averages.
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