Stifel downgraded Gildan Activewear to Hold from Buy with a price target of $34, down from $37. Several shareholders have announced publicly their disagreement with the company’s decision to terminate CEO Glenn Chamandy, but Gildan’s appointment of Chris Shackelton, who is in favor of the changes made by the board of directors, to its board suggests that the board is unlikely to reinstate Chamandy so the firm is moving to the sidelines until this “drama abates,” the analyst tells investors. These events create significant distraction for the board and the management team and could result in a proxy fight, the analyst added.
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Read More on GIL:
- Gildan Activewear announces support agreement with Coliseum Capital Management
- Gildan Welcomes Chris Shackelton to its Board of Directors, along with Support from Coliseum Capital Management
- Gildan’s largest shareholder tells Bloomberg CEO Chamandy should return
- Gildan Activewear (NYSE:GIL): Large Investor Calls to Reinstate Former CEO
- Gildan Activewear shareholder calls board’s handling of CEO succession ‘poor’