UPDATE: Bank of America Downgrades Gildan Activewear to Neutral on Valuation
Bank of America reduced its rating on Gildan Activewear (NYSE: 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.
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