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UPDATE: Stifel Upgrades Gildan Activewear Despite Risk Factors

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Earnings Scheduled For November 12, 2015

Gildan Activewear (NYSE: GLD) was upgraded from Hold to Buy by Stifel Friday morning.

Stifel analysts mentioned key risk factors:

“Our 12 month price target of $72 is based on 17.5x our FY16 estimate of $4.12. In addition to other factors, key risks to our target price include the following: 1) Gildan operates in a highly competitive market with many players offering suitable substitute products, 2) revenue concentration with the top 10 customers generating 57.5% of FY13 sales, 3) cotton prices are highly volatile, with potential input cost increases negatively affecting gross margins, and integration risks related to acquisitions, 4) rapid growth of manufacturing capacity introduces operational risk and potential for fixed cost deleverage if sales don't materialize.”

Gildan traded recently at $58.54, down 0.03 percent.

Posted-In: StifelAnalyst Color Upgrades Price Target Analyst Ratings


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