UPDATE: Bank of America Downgrades Gildan Activewear to Neutral on Valuation

Bank of America reduced its rating on Gildan Activewear GIL from Buy to Neutral and raised its price objective from $33 to $35. Bank of America noted, "Our rating change is based on our view that valuation largely reflects expectations for a strong earnings recovery in 2013 and is not due to deterioration in fundamentals. Following last year's disappointing earnings guidance, GIL shares have appreciated 80% YTD reflecting improved market conditions and investors' renewed confidence in management's ability to drive long term growth. GIL is trading near its 3-year avg. of 14x forward P/E. We believe risk/return is neutral at current valuation." Gildan Activewear closed at $34.25 on Wednesday.