Gildan Activewear Upgraded by DA Davidson to Buy (GIL)
Gildan Activewear (NYSE:GIL) was upgraded by investment analysts at DA Davidson from a “neutral” rating to a “buy” rating in a note issued to investors on Monday, TheFlyOnTheWall.com reports. The firm currently has a $60.00 price objective on the stock, up from their previous price objective of $52.00. DA Davidson’s target price indicates a potential upside of 19.02% from the stock’s previous close.
The analysts wrote, “Honduras investor event helped build our confidence in both Gildan’s low-cost manufacturing and Branded Apparel growth strategy. After downgrading the shares earlier this year on valuation and concerns around retail execution, we have been impressed with the strong performance of GIL’s new retail programs. This has already led to incremental shelf space gains at Walmart and significant new programs on plan for 2014. We see Gildan’s strategy yielding substantial share gains in the coming years against both private label as well as weaker branded competitors such as Fruit of the Loom.”
Shares of Gildan Activewear (NYSE:GIL) traded up 3.15% during mid-day trading on Monday, hitting $52.00. The stock had a trading volume of 100,606 shares. Gildan Activewear has a one year low of $34.53 and a one year high of $50.44. The stock’s 50-day moving average is $48.37 and its 200-day moving average is $44.95. The company has a market cap of $6.321 billion and a price-to-earnings ratio of 19.31.
Gildan Activewear (NYSE:GIL) last posted its quarterly earnings results on Thursday, November 21st. The company reported $0.83 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.84 by $0.01. The company had revenue of $626.20 million for the quarter, compared to the consensus estimate of $604.71 million. During the same quarter in the previous year, the company posted $0.78 earnings per share. The company’s revenue for the quarter was up 11.5% on a year-over-year basis. Analysts expect that Gildan Activewear will post $3.08 EPS for the current fiscal year.
The company also recently announced a quarterly dividend, which is scheduled for Monday, January 6th. Shareholders of record on Thursday, December 12th will be paid a dividend of $0.11 per share. This represents a $0.43 annualized dividend and a dividend yield of 0.86%. The ex-dividend date is Tuesday, December 10th.
A number of other firms have also recently commented on GIL. Analysts at CIBC upgraded shares of Gildan Activewear to a “sector outperform” rating in a research note to investors on Friday. Separately, analysts at BMO Capital Markets raised their price target on shares of Gildan Activewear from C$53.00 to C$56.00 in a research note to investors on Friday. They now have an “outperform” rating on the stock. Finally, analysts at GMP Securities upgraded shares of Gildan Activewear to a “buy” rating in a research note to investors on Friday. Five equities research analysts have rated the stock with a hold rating, seven have issued a buy rating and two have issued a strong buy rating to the company’s stock. The stock currently has an average rating of “Buy” and a consensus target price of $50.18.
Gildan Activewear Inc (NYSE:GIL) is a marketer and vertically-integrated global manufacturer of basic, non-fashion apparel products for customers.
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