UPDATE: D.A. Davidson Reiterates Buy Rating, Raises PT on Gildan Activewear on Uneventful 4Q Results

In a report published Thursday, D.A. Davidson analyst Andrew Burns reiterated a Buy rating on

, and raised the price target from $68.00 to $70.00. In the report, D.A. Davidson noted, "GIL reported revenue of $390.6 million and adjusted EPS of $(0.31) (GAAP $(0.34)), compared to consensus of $402.1 million and $(0.31), and our estimates of $400.2 million and $(0.30). Guidance called for revenue of $400 million and EPS of $(0.30). Branded Apparel sales grew 21.5% year-over-year (y/y) and Printwear sales declined 38.8%, reflecting the 1x inventory allowance and distributor destocking that was included in guidance. Gross margin declined 1544bp y/y to 11.0%, primarily driven by the $47.5 million 1x inventory allowance and consumption of high-cost inventory related to previously disclosed manufacturing inefficiencies in Branded Apparel. SG&A increased 9.3% y/y to $79.6 million, representing 20.4% of sales (vs. 16.1% last year). Inventory was up 29% y/y." Gildan Activewear closed on Wednesday at $58.32.