Post by
retiredcf on Dec 20, 2021 7:11am
Desjardins Recommendation
Desjardins Securities analyst Chris Li expects consumer stocks to remain volatile in 2022 creating “attractive buying and selling opportunities” for investors.
He named Gildan Activewear Inc. ( “buy” and $59 target) a “reopening play.”
“A continuing demand recovery in North America in 2022 and benefits from Back to Basics are key,” said Mr. Li. “Despite the strong year-to-date share price performance (+45%), valuation is reasonable at 15.5 times P/E (2022 estimates) vs the historical average of 15–16 times and supported by sustainable 10-per-cent-plus EPS growth. We see cotton price volatility and news on a global minimum tax as key risks.”