UPDATE: D.A. Davidson & Co. Reiterates Buy Rating, Raises PT on Gildan Activewear on Additional Long-Term Growth Driver

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In a report published Friday, D.A. Davidson & Co. analyst Andrew Burns reiterated a Buy rating on
Gildan ActivewearGIL
, and raised the price target from $64.00 to $68.00. In the report, D.A. Davidson & Co. noted, “This morning, GIL announced it has signed a definitive agreement to acquire Doris Inc. for USD $101.4 million ($110.6 million, if all performance-based targets are hit). The acquisition, expected to close early July 2014, will be paid in cash and financed out of GIL's credit facility. The deal is expected to be accretive to FY15 earnings. Based on revenue and EBITDA of $87.6 million and $12.9 million, respectively, for the year ended March 31, 2014, the deal values Doris, Inc. at 1.2x EV/Sales (1.3x with performance payouts) and 7.9x EV/EBITDA (8.6x with performance payouts).” Gildan Activewear closed on Thursday at $57.41.
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Posted In: Analyst ColorPrice TargetAnalyst RatingsAndrew BurnsD.A. Davidson & Co.
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