Gildan Activewear (GIL) Stock Forecast & Price Target

Gildan Activewear's acquisition of Hanesbrands is anticipated to enhance the company's market position, enabling it to achieve share gains and drive steady value creation with a projected 2026 P/E of 13.1x. The merger is expected to generate pro forma annual revenues of approximately $6.9 billion, with an even distribution across Gildan and Hanes, which will provide greater diversification across channels and products. Additionally, potential for improved margin expansion and efficient manufacturing capabilities is expected to further bolster financial performance amidst a challenging macro environment.

Gildan Activewear's stock faces a negative outlook primarily due to potential negative impacts from trade policies affecting its manufacturing jurisdictions, which could disrupt its operations. Furthermore, a prolonged economic recession could lead to a significant decline in industry volumes, compounding existing weaknesses in consumer demand. Additionally, the company is likely to experience margin compression as raw material input costs, especially cotton, continue to rise, placing further pressure on profitability.