UPDATE: Canaccord Genuity Upgraded Gildan Activewear; Raises PT
According to a research report published this morning, Canaccord Genuity upgraded Gildan Activewear (NYSE: GIL) from Hold to Buy, and raised PT from $27 to $31.
Canaccord Genuity commented in the report, "Gildan announced the acquisition of Anvil Holdings Inc., a supplier of basic T-shirts and sport shirts to the printwear market, for $88 million. During F2012, Anvil generated sales of over $200 million and EBITDA of $17 million, implying an accretive 5.2x transaction multiple. Anvil had a roughly 7% market share in the wholesale basics channel. Following the acquisition, Gildan expects to have a 70% market share of the wholesale distributor channel."
Gildan Activewear closed yesterday at $26.85.
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