DA Davidson Upgrades Gildan Activewear (GIL) to Buy; Near-term is Ugly, But Earnings Power in FY13 Remains Intact
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Price: $56.72 -0.54%
Rating Summary:
11 Buy, 15 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
11 Buy, 15 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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DA Davidson upgraded Gildan Activewear (NYSE: GIL) to Buy, price target lowered from $29 to $22.
DA analyst said, "Quarter was weak...Outlook was worse...We believe patient investors will be rewarded as trends sequentially improve throughout FY12. The next few quarters will be rough and visibility remains low; however, we believe in Gildan’s long-term ability to leverage its low cost leadership position into market share gains in both screenprint and retail channels. Our 10.0x target P/E multiple (on FY13 EPS) is a substantial discount to the 5-year median P/E of 15.1x and, in our view, adequately reflects the nearterm issues Gildan is facing."
"In our view, FY12 guidance materially understates Gildan’s long-term
earnings power, which we believe will be increasingly evident as FY12
progresses...With FY12 guidance resetting earnings expectations, we believe the bar is set sufficiently low. We see room for guidance improvements as the year progresses and we exit this unprecedented high-cotton cost period."
For an analyst ratings summary and ratings history on Gildan Activewear click here. For more ratings news on Gildan Activewear click here.
Shares of Gildan Activewear closed at $16.36 yesterday.
DA analyst said, "Quarter was weak...Outlook was worse...We believe patient investors will be rewarded as trends sequentially improve throughout FY12. The next few quarters will be rough and visibility remains low; however, we believe in Gildan’s long-term ability to leverage its low cost leadership position into market share gains in both screenprint and retail channels. Our 10.0x target P/E multiple (on FY13 EPS) is a substantial discount to the 5-year median P/E of 15.1x and, in our view, adequately reflects the nearterm issues Gildan is facing."
"In our view, FY12 guidance materially understates Gildan’s long-term
earnings power, which we believe will be increasingly evident as FY12
progresses...With FY12 guidance resetting earnings expectations, we believe the bar is set sufficiently low. We see room for guidance improvements as the year progresses and we exit this unprecedented high-cotton cost period."
For an analyst ratings summary and ratings history on Gildan Activewear click here. For more ratings news on Gildan Activewear click here.
Shares of Gildan Activewear closed at $16.36 yesterday.
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