Browning West, an investment firm and one of the largest shareholders of Gildan Activewear (NYSE:GIL) (TSE:GIL), is advocating for the reinstatement of the former CEO, Glenn Chamandy. Browning West owns approximately 3.9% stake in Gildan Activewear, a Canadian clothing company.
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Gildan announced on December 11 that Glenn Chamandy had stepped down from his role as the CEO and director of the company. Additionally, Vince Tyra has been appointed as the new President and CEO, effective February 12, 2024.
Browning West Shows Confidence in Chamandy
In a letter to Gildan’s Board of Directors, Browning West underscored its status as one of the company’s largest and longstanding shareholders. The letter portrayed Glenn Chamandy as a strong and effective leader. Highlighting his pivotal role in the company’s success, Browning West said that under Mr. Chamandy’s guidance, Gildan’s stock has delivered an impressive 99x total return for shareholders, with its EPS growing at about 16% annually over the past 25 years.
Browning West also noted that, with Mr. Chamandy at the helm, Gildan’s share price was poised to reach a value between $60 to $80 in the next two years. This forecast suggests an anticipated increase of approximately 80% to 140% from the current price.
The decision on whether Gildan’s board will reinstate Mr. Chamandy as the CEO is yet to be determined. Meanwhile, let’s look at the Street’s recommendation for GIL stock.
Is Gildan a Good Stock to Buy?
The geopolitical and macroeconomic challenges have taken a toll on Gildan’s near-term performance. However, its focus on product innovation, optimization of manufacturing platform to reduce costs, market share gains, and strong balance sheet keep analysts optimistic.
Gil stock has six Buy and one Hold recommendations for a Strong Buy consensus rating. While its stock has gained over 20% year-to-date, analysts’ average price target of $37.89 implies 14.58% upside potential from current levels.
