Scotiabank raised the firm’s price target on Gildan Activewear (GIL) to $62 from $59 and keeps an Outperform rating on the shares. On paper, Gildan’s deal to acquire Hanesbrands (HBI) is “highly compelling,” but deals of this magnitude for underperforming assets carrying meaningful risks, the analyst tells investors. Overall, the firm still lands on a “positive outcome” for the stock, primarily due to its synergies’ magnitude and sizable free cash flow.
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Read More on GIL:
- Gildan Activewear price target raised to $68 from $61 at RBC Capital
- Gildan Activewear price target raised to $70 from $61 at BMO Capital
- Strategic Acquisition of HanesBrands Positions Gildan Activewear for Global Leadership and Growth
- Hanesbrands upgraded to Equal Weight from Underweight at Wells Fargo
- CoreWeave reports Q2 beat, Gildan to acquire Hanesbrands: Morning Buzz