Gildan: HanesBrands Integration, Cost Synergies, and Asset Sales Drive EPS Upside and Justify Buy Rating

Analyst Brian Morrison of TD Cowen maintained a Buy rating on Gildan Activewear, boosting the price target to $77.00.

Brian Morrison has given his Buy rating due to a combination of factors tied to Gildan’s growth prospects and strategic execution following the HanesBrands acquisition. He expects the integration of HBI into Gildan’s efficient, low-cost manufacturing platform to unlock meaningful cost synergies and support innovation and market share gains, particularly in Activewear. Morrison also points to upcoming strategic disclosures, including further details on integration plans, as key events that could strengthen investor confidence in the company’s ability to meet its long-term earnings targets. While he remains measured on the more challenged Hosiery/underwear segment, he sees modest growth there supported by new programs and easier comparisons, alongside margin benefits from favorable product mix and operational efficiencies in Bangladesh.

Morrison highlights that management’s reaffirmation of its 2028 earnings framework, combined with potential non-core asset sales such as the planned divestiture of Australian operations, underpins a path to significantly higher EPS over time. He expects proceeds from these asset sales to fund a renewed share repurchase program, further enhancing per-share earnings growth. His conversations and observations at the Long Beach ISS Impression Expo also support a constructive view on industry fundamentals, with indications that retail demand has stabilized and begun to recover. Taken together, these factors support his higher price target and the view that Gildan’s shares offer attractive upside from current levels, justifying a Buy recommendation.

In another report released today, TipRanks – Anthropic also reiterated a Buy rating on the stock with a C$102.00 price target.

Based on the recent corporate insider activity of 59 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of GIL in relation to earlier this year.