Gildan Activewear initiated with an Overweight at Barclays

Barclays initiated coverage of Gildan Activewear (GIL) with an Overweight rating and $51 price target The company is relatively better positioned than others to absorb the tariff costs given its combination of no China sourcing exposure, innovation this year, such as Plasma Print technologies and Color Comfort, that can command higher prices and offset cost pressures, and reduced competition in the print market from the exit of Delta, the analyst tells investors in a research note. The firm says Gildan is highly cash-generative and has ample room to return capital to shareholders while maintaining an attractive leverage ratio.