Post by
retiredcf on Mar 23, 2022 8:46am
CIBC
2022 Retail & Consumer Conference - March 22, 2022
Gildan Activewear Inc. (GIL-NYSE) — Outperformer
Company Profile
Gildan Activewear Inc. is a manufacturer and marketer of
premium-quality basic apparel. It sells principally into the
wholesale channel, with a growing presence in retail.
Investment Thesis
Gildan’s new three-year Sustainable Growth Strategy aims to
deliver organic sales growth off an improved cost profile. We
believe Gildan’s end-markets have become structurally larger
post-pandemic and believe the company is well positioned to
gain share by leveraging its competitive advantage as the
low-cost integrated manufacturer. Incremental capacity
investments that will come online in the near to medium term
should further support share gains across end-markets. Cash
flows remain very strong and valuation is attractive.
Price Target (Base Case): US$49.00
Our price target is based on a 17x P/E multiple on our 2022E
EPS.
Upside Scenario: US$55.00
In this scenario, we apply a 19x P/E multiple to our 2022E EPS.
Downside Scenario: US$32.00
In this scenario, we reduce our 2022E EPS by 25%, and apply a
15x P/E multiple.