Gildan Activewear initiated with a Buy at Stifel

Stifel initiated coverage of Gildan Activewear with a Buy rating and $38 price target. The company has manufacturing expansion plans to support high-single-digit organic revenue growth, but the stock’s valuation is currently 30% lower than its 10-year average and near a 10-year low, the analyst tells investors in a research note. Stifel believes that this depressed valuation provides investors with a cushion under a scenario where consensus estimates are too high.