UBS raised the firm’s price target on Gildan Activewear (GIL) to $110 from $80 and keeps a Buy rating on the shares. The acquisition of Hanesbrands (HBI) is expected to provide Gildan with greater scale, combining its low-cost vertically integrated manufacturing with Hanesbrands’ strong retail brands to drive sales growth and margin expansion, the analyst tells investors in a research note. Gildan is also exploring strategic alternatives for the HanesBrands Australia business, with a potential sale by FY26 that could support deleveraging and the resumption of share buybacks, the firm says.
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