DA Davidson Starts Gildan Activewear (GIL) at Neutral; Long-term Earnings Growth Potential, but Near-term Headwinds
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Price: $57.03 +2.28%
Rating Summary:
11 Buy, 15 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 9 | New: 24
Rating Summary:
11 Buy, 15 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 9 | New: 24
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DA Davidson initiates coverage on Gildan Activewear (NYSE: GIL) with a Neutral. PT $29.00.
DA analyst says, "After dominating the screenprint channel, Gildan has its eyes on U.S. retail. Gildan is a leading basic apparel manufacturer with a demonstrated track record of gaining market share (now over 60%) in the U.S. screenprint channel. Looking to replicate this model in the U.S. retail channel, it has won mass market retail programs, acquired Gold Toe, and opened a new dedicated retail distribution center in Charleston, SC. Long-term, Gildan’s retail growth strategy has never looked better, but near-term earnings visibility is a concern."
"Our price target is based on 12.5x our 2012 EPS estimate of $2.30. Gildan’s current valuation and long-term earnings growth potential are compelling; however, we need increased confidence that it can continue its earnings growth trajectory, despite near-term screenprint channel destocking and margin pressures, before recommending the shares."
For more ratings news on Gildan Activewear click here and for the rating history of Gildan Activewear click here.
Shares of Gildan Activewear closed at $26.03 yesterday.
DA analyst says, "After dominating the screenprint channel, Gildan has its eyes on U.S. retail. Gildan is a leading basic apparel manufacturer with a demonstrated track record of gaining market share (now over 60%) in the U.S. screenprint channel. Looking to replicate this model in the U.S. retail channel, it has won mass market retail programs, acquired Gold Toe, and opened a new dedicated retail distribution center in Charleston, SC. Long-term, Gildan’s retail growth strategy has never looked better, but near-term earnings visibility is a concern."
"Our price target is based on 12.5x our 2012 EPS estimate of $2.30. Gildan’s current valuation and long-term earnings growth potential are compelling; however, we need increased confidence that it can continue its earnings growth trajectory, despite near-term screenprint channel destocking and margin pressures, before recommending the shares."
For more ratings news on Gildan Activewear click here and for the rating history of Gildan Activewear click here.
Shares of Gildan Activewear closed at $26.03 yesterday.
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