01:29 PM EDT, 04/02/2024 (MT Newswires) -- An activist shareholder, Browning West, has suggested that its proposal could result in Gildan's share price hitting US$65 by 2025 and US$102 by 2028. Many of the board members proposed would also appeal to investors.

Gildan has options for upside including a possible takeout offer or the activist proposal, notes National Bank's Vishal Shreedhar. He adds that investors would accept a reasonable takeout offer, if one was presented, as it provides a more certain outcome.

"We view the activist proposal ideas generally positively; however, execution is key. Our perception is that many investors are asking how the re-instatement of Mr. Chamandy would meaningfully reinvigorate growth versus the record (5 and 10 years)." Gildan has historically delivered a revenue CAGR of 1.9% (5-year) and 3.7% (10-year), and an EPS CAGR of ~6.7% (5 and 10-year), Shreedhar points out.

Maintain Outperform rating; price target unchanged at C$58.

Price: 49.50, Change: -0.85, Percent Change: -1.69