Gildan Activewear (GIL) Stock Forecast & Price Target

Gildan Activewear's positive outlook is reinforced by its strategic acquisition of Hanesbrands, which is anticipated to drive market share gains and enhance operational efficiencies, as evidenced by a projected 2026 P/E ratio of 13.1x. The pro forma combined company is expected to generate approximately $6.9 billion in annual revenues, showcasing a balanced contribution from both Gildan and Hanes and reinforcing its market diversification. Additionally, the potential for greater-than-expected margin expansion and improved revenue growth further supports the financial prospects for Gildan in the upcoming years, indicating a trajectory toward steady value creation.

Gildan Activewear is facing significant challenges due to heightened trade policies affecting its key manufacturing regions, which could constrain production capabilities. Additionally, the company is vulnerable to a prolonged economic recession that may lead to a substantial decline in industry demand, as indicated by recent revenue declines of -5.7%, -8.6%, and -1.1% in the past three years. Furthermore, rising raw material costs, especially for cotton, are likely to contribute to margin compression, exacerbating financial pressures on the company’s profitability trajectory.