UPDATE: Citigroup Maintains Sell, Raises PT to $16 on Gildan Activewear

Citigroup reiterates its Sell rating on Gildan Activewear

as as it is concerned on screenprint price wars over the next years. PT is raised to $16 from $15. Citigroup notes, "Given the industry's overcapacity and Fruit of the Loom's (FoL) aggressive pricing, we believe a potential price war could break out in screenprint. We also believe GIL may have to devalue additional inventory in 2012, putting pressure on EPS. Finally, we are not confident in GIL's ability to fix retail and use it as its next growth driver. As a result, we are lowering our 2012 EPS estimate to $1.12, vs. $1.17 previously, and well below consensus of $1.49 and mgmt. guid. of $1.30. We also believe 2013 EPS of $2+ is a stretched given the capacity and pricing issues (we're at $1.83 vs. street $2.20)." GIL closed at $21.50 per share on Thursday.