UPDATE: Goldman Sachs Resumes Gildan Activewear at Neutral on Price-Performance

In a report published by Goldman Sachs, analyst Taposh Bari resumed coverage on Gildan Activewear

with a Neutral rating and $39 price target. Goldman Sachs reported that, “Further gains in the North American printwear market are hard to imagine given the company's 70% share and slow category growth. As a result, we see Gildan's earnings algorithm increasingly dependent on (1) further supply chain efficiencies, (2) international growth and (3) the development of Gildan as a consumer brand. Supply chain efficiencies are likely to materialize in the form of higher margins and stronger competitive barriers in the competitive printwear market. Investments in yarn spinning facilities, biomass power generation, and Rio Nance textile plants should drive also leverage in the coming years.” Shares of Gildan Activewear closed at $38.73 on Thursday.