Gildan Activewear Inc. (GIL) Sees Optimistic Price Target from RBC Capital
- RBC Capital sets a price target of $68 for Gildan Activewear Inc. (NYSE:GIL), indicating a potential upside of about 20%.
- The acquisition of HanesBrands is expected to create a global leader in basic apparel, aiming for $200 million in annual cost synergies within three years.
- Positive market trends and potential interest rate cuts by the Federal Reserve are seen as beneficial for Gildan's growth prospects.
Gildan Activewear Inc. (NYSE:GIL) is a leading manufacturer of everyday basic apparel, including T-shirts, socks, and underwear. The company is known for its vertically integrated manufacturing process, which allows it to maintain cost efficiency and quality control. Gildan competes with other major apparel brands like HanesBrands Inc. and Fruit of the Loom.
On August 14, 2025, Ryland Conrad from RBC Capital set a price target of $68 for GIL, suggesting a potential upside of about 20% from its trading price of $56.66. This optimistic outlook aligns with recent developments, such as Gildan's agreement to acquire HanesBrands, which has positively influenced the stock's performance.
The acquisition of HanesBrands, valued at $2.2 billion in equity and $4.4 billion in enterprise value, is a strategic move for Gildan. This merger aims to create a global leader in basic apparel by enhancing Gildan's scale and integrating iconic innerwear brands. The deal is expected to generate $200 million in annual cost synergies within three years.
The broader market environment also supports Gildan's growth prospects. As highlighted by Investopedia, optimism about potential interest rate cuts by the Federal Reserve has driven U.S. equities higher. This positive trend has benefited various sectors, including home builders and apparel companies like Gildan.
Currently, GIL's stock is priced at $56.56, reflecting a 2.97% increase. The stock has fluctuated between $54.68 and $57.76 today, with a market capitalization of approximately $8.45 billion. The trading volume on the NYSE is 1,775,233 shares, indicating strong investor interest in the company's future prospects.
| Symbol | Price | %chg |
|---|---|---|
| POLU.JK | 24800 | 0 |
| ARGO.JK | 1090 | 0 |
| SRIL.JK | 146 | 0 |
| 111770.KS | 58600 | 0 |
Gildan Activewear Inc. (NYSE: GIL) Earnings Preview and Analyst Ratings
- Wall Street anticipates earnings per share of $0.98 and revenue of approximately $914.9 million for Gildan Activewear's upcoming quarterly earnings.
- The stock has received a consensus "Buy" recommendation, with an average 12-month price target set at C$75.50.
- GIL's financial health is indicated by a P/E ratio of 18.89, a price-to-sales ratio of 2.72, and a current ratio of 3.87.
Gildan Activewear Inc. (NYSE: GIL) is a leading manufacturer and marketer of quality branded basic apparel. The company is known for its activewear, socks, and underwear, catering to a wide range of consumers. As GIL prepares to release its quarterly earnings on October 29, 2025, Wall Street anticipates earnings per share of $0.98 and revenue of approximately $914.9 million.
The stock has garnered a consensus "Buy" recommendation from eight brokerages, as highlighted by MarketBeat. This includes two "hold" ratings, three "buy" ratings, and three "strong buy" ratings. The average 12-month price target for GIL is set at C$75.50, reflecting positive sentiment among analysts.
National Bankshares recently increased their price target for GIL from C$91.00 to C$92.00, maintaining an "outperform" rating. TD Securities also raised their price objective from C$60.00 to C$67.00, assigning a "buy" rating. Cfra Research upgraded the stock to a "hold" rating in August, indicating a shift in analyst perspectives.
GIL's financial metrics provide insights into its market valuation. The company has a P/E ratio of approximately 18.89, a price-to-sales ratio of about 2.72, and an enterprise value to sales ratio of around 3.29. These figures suggest a balanced valuation relative to its earnings and revenue.
The company's financial health is further supported by a debt-to-equity ratio of approximately 1.39 and a current ratio of about 3.87, indicating strong liquidity. With an earnings yield of about 5.29%, GIL offers a reasonable return on investment, making it an attractive option for investors.
