JFrog stock rises as Cantor Fitzgerald maintains Overweight rating after strong Q2
Investing.com - BMO Capital raised its price target on Gildan Activewear (NYSE:GIL) to $70.00 from $61.00 on Thursday, while maintaining an Outperform rating on the stock. The stock, currently trading at $57.03, is near its 52-week high of $55.97, with a market capitalization of $8.52 billion. According to InvestingPro analysis, the stock appears slightly overvalued at current levels.
The price target increase follows Gildan’s acquisition of HanesBrands, which BMO Capital views positively as creating a "global basics apparel leader" in the industry.
The acquisition combines Gildan’s leading position in activewear with HanesBrands’ strong presence in U.S. innerwear, resulting in a more diversified product and channel mix for the company.
BMO Capital believes the deal enhances Gildan’s competitive positioning and its ability to optimize manufacturing operations across the expanded business.
The firm noted that the expected earnings accretion and pro forma leverage from the acquisition are performing better than their initial estimates, supporting the higher valuation target.
In other recent news, Gildan Activewear Inc. has announced a definitive merger agreement to acquire HanesBrands Inc. in a deal valued at approximately $4.4 billion. HanesBrands shareholders are set to receive 0.102 common shares of Gildan and $0.80 in cash for each share, representing a 24% premium over HanesBrands’ previous closing price. Gildan also reported strong second-quarter earnings, with earnings per share reaching $0.97, up from $0.74 last year, and revenue hitting $919 million, exceeding analyst estimates by $13 million. RBC Capital has initiated coverage on Gildan with an Outperform rating, citing strong business execution. CFRA raised its price target for Gildan to C$76, maintaining a Hold rating, while Barclays increased its target to $56, keeping an Overweight rating. Scotiabank reinstated coverage with a Sector Outperform rating and a $55 price target, noting Gildan’s high margins and efficient supply chain. These developments highlight Gildan’s strategic moves and financial performance amid industry challenges.
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