BMO Capital has increased its target price for Gildan Activewear (GIL) to $78 from $70 while maintaining an Outperform recommendation on the stock. The new target implies meaningful upside from the prevailing share price of $66.91 and comes as the stock trades close to its 52-week high of $67.96. InvestingPro data referenced by analysts indicates Gildan is currently assessed as slightly undervalued on a Fair Value basis.
The analyst action followed BMO Capital’s attendance at the Impressions Expo in Long Beach, California, held January 22-24, 2026, where the firm also conducted retail channel checks. Those on-the-ground checks informed BMO’s view of branded positions across the category and supplier dynamics in wholesale and retail channels.
BMO cited confidence that Gildan can convert its low-cost, vertically-integrated manufacturing footprint into incremental wholesale volume and market-share gains while supporting sustainably higher margins. The analyst note linked this operating leverage to the company’s 2025/2026 product innovation pipeline and described Gildan’s balance sheet as a foundation for executing growth initiatives, pointing to a current ratio of 2.01 as evidence that liquid assets exceed short-term obligations.
Retail channel feedback gathered at the expo indicated that Hanes and Gold Toe retain leading branded positions in their categories. BMO flagged this as potentially favorable for Gildan following its acquisition of HanesBrands, noting anticipated synergy realization as a contributor to stronger earnings and free cash flow over time. The firm described Gildan’s forward valuation as attractive, citing a 2026 estimated EV/EBITDA multiple of 10.6x.
In separate corporate reporting, Gildan Activewear Inc. disclosed record third-quarter adjusted earnings that exceeded expectations. The company’s profitability metrics drew positive attention from market participants, even as revenue for the period registered a small shortfall versus analyst projections. Observers and analysts focused on the results as an indication that Gildan remains capable of sustaining profitability in the current operating environment.
Taken together, the BMO upgrade and the company’s recent quarterly results form the basis for investor attention around Gildan’s margin trajectory, cash generation prospects, and the pace at which acquisition synergies may materialize. The firm’s valuation metrics, balance sheet liquidity, and product innovation cadence are central themes underpinning the updated price target and the maintained Outperform rating.