Gildan Activewear downgraded to Hold from Buy at TD Securities

TD Securities analyst Brian Morrison downgraded Gildan Activewear to Hold from Buy with a price target of $36, down from $43. The analyst’s mid-term outlook for Gildan remains positive, but tells investors in a research note that the weakening North American outlook for 2023 and recent share-price appreciation, challenging 1H23 y/y comparable periods, and wavering consumer discretionary purchasing power drive the lowering of the recommendation. Gildan is well-positioned to gain market share across its key focus verticals, including fleece, ring-spun, national accounts, and private label, but the firm views the catalyst to share price as progression toward its 2024 financial targets, which is "unlikely" in the near-term.