Credit Suisse Sees Opportunity in Branded Apparel, Initiates Ouperform Rating on Gildan Activewear

In a report published Monday, Credit Suisse analyst David Hartley initiates coverage on

with an Outperform rating and a $70.00 (CDN) price target. Hartley remarked on the incredible growth opportunity for Gildan in building the brand in the United States. The analyst added that printwear continues to drive free cash flow for branded apparal, and emphasized the company's manufacturing strength. He commented that branded apparel provides growth, ability to leverage innovation and trends, and a stable demand. Credit Suisse sees a $400- $500 million contract manufacturing opportunity for mega brands. The analyst wrote, “Gildan is a unique story. A comparable story from our past does exist. We show how a manufacturing growth story in the past exposes why the power of a brand, and less exposure to commodity input cost volatility creates opportunity within a relatively commoditized product category.” Shares of Gildan Activewear at $55.41 on Monday.