Stifel upgrades Gildan to Buy on return of Glenn Chamandy

Stifel upgraded Gildan Activewear to Buy from Hold with a price target of $51, up from $39. The company’s Q2 results which were slightly higher than expected and it introduced a three-year outlook calling for mid-teen earnings growth, a higher growth rate than previously modeled, the analyst tells investors in a research note. The firm cites the return of Glenn Chamandy as well as Gildan’s recent operational performance and favorable outlook for the upgrade. Given the recent operational performance and “impressive” market share gains, stronger outlook than expected and the stock’s “appealing valuation,” Gildan’s shares “are poised to continue their upward trajectory,” contends Stifel.