Brian Morrison, an analyst from TD Cowen, maintained the Buy rating on Gildan Activewear. The associated price target remains the same with $74.00.
Meet Samuel – Your Personal Investing Prophet
- Start a conversation with TipRanks’ trusted, data-backed investment intelligence
- Ask Samuel about stocks, your portfolio, or the market and get instant, personalized insights in seconds
Brian Morrison has given his Buy rating due to a combination of factors surrounding Gildan Activewear’s strategic positioning and future growth prospects. The anticipated acquisition of HanesBrands Inc. is expected to enhance Gildan’s earnings per share growth and free cash flow, leveraging its low-cost manufacturing advantage. This merger is seen as a catalyst for share price appreciation, driven by successful integration, asset sales, and a potential restart of the normal course issuer bid.
Furthermore, the synergy from combining Gildan’s cost leadership with HanesBrands’ retail brand strength is projected to drive significant cost savings and operational efficiencies. Morrison anticipates these synergies to exceed management’s target, bolstered by Gildan’s past success in integrating facilities. The market’s potential underestimation of Gildan’s ability to integrate HanesBrands’ textile operations and the expected market share gains are additional factors supporting the Buy rating.