Clothing company Gildan Activewear (NYSE:GIL)(TSE:GIL) is up for sale. Per a Bloomberg report, private equity firm Sycamore Partners is considering a bid for Gildan Activewear. The market responded positively to this news, with GIL stock closing over 10% higher on March 19.
Responding to the media reports, the company acknowledged receiving a buyout offer. The company’s Board formed a Special Committee of independent directors to review the proposed offer and any other strategic alternatives available, including maintaining the current course of action and adhering to Gildan’s existing business strategy.
Gildan stock has been in the news for the ongoing dispute between Gildan’s Board and certain major shareholders regarding the ousting of its CEO, Glenn Chamandy. Investors, including prominent hedge fund managers Browning West and Oakcliff Capital, voiced their concerns over the leadership change via letters to the company’s board. Notably, Gildan removed Chamandy in December of last year. Moreover, the company has labeled Browning West’s swift acquisition of Gildan shares as a breach of U.S. antitrust regulations.
Is Gildan a Good Stock to Buy?
Wall Street analysts remain cautiously optimistic about Gildan’s growth prospects. With eight Buy and three Hold recommendations, Gildan stock has a Moderate Buy consensus rating.
GIL stock has gained over 21% in one year. Analysts’ average price target on GIL stock is $39.90, which implies 7.20% upside potential from current levels.
