Gildan Activewear (GIL.TO, GIL) reported a first-quarter earnings beat, notes Stifel Canada.
Analyst Martin Landry, who is maintaining an US$80.00 price target and buy rating on the shares, notes management was confident during the earnings call, despite rising commodity costs, as a significant portion of the company's cotton and energy requirements has been hedged. In 2027, Gildan expects to be able to offset inflationary pressures with price increases given its leadership position in the wholesale channel and its lower cost structure than competitors, he adds.
Point-of-sale data indicate that Gildan is continuing to gain market share, with growth rates outpacing the broader market in both retail and wholesale channels. The integration of Hanes' textile facilities also appears to be progressing well, as most of Hanes' volumes have already been transferred to Gildan's facilities.
"We make no changes to our forecasts, but our visibility has increased for 2026. We keep our target price at US$80, which represent an appealing 12-months upside of 29%." Gildan is also on Stifel's Select List.
Price: $84.77, Change: $+0.47, Percent Change: +0.56%