Canaccord Looking for Gildan Activewear Inc.’s top line to “hold steady amid [a] challenging operating backdrop,” Canaccord Genuity’s Luke Hannan trimmed his target for its shares to US$42 from US$42.50 with a “buy” rating ahead of its Nov. 3 third-quarter earnings release. The average is US$41.26.
“We believe the combination of stronger margins as a result of Back to Basics cost savings, GIL’s low-cost manufacturing footprint, a healthy FCF generation profile and an attractive valuation creates a favourable risk/reward profile for GIL shares,” he said.