Gildan Activewear's (GIL) Q2 financial results provide a clearer path to resuming share buybacks by year-end with the announced sale of HanesBrands Australia, RBC Capital Markets said in a Thursday note.
The analysts said that despite the modest revenue shortfall in Q2, Gildan's Q2 results and updated 2026 guidance checked most of the boxes with structural upside to profitability.
RBC also said that Gildan's upward revision to its 2026 operating margins reflects a structural tariff benefit rather than a one-time tailwind. The company now expects 2026 adjusted operating margins of about 21.8%, up 180 basis points from previous expectations.
Furthermore, the recent pullback in Gildan's shares presents an attractive buying opportunity, with further upside potential over the next few years, the analysts said.
RBC maintain an outperform rating on the stock, while increasing its price target to $82 from $76.
Gildan Activewear's Q2 Report Provides Clearer Path to Resuming Share Buybacks by Year-end, RBC Says
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