11:12 AM EDT, 08/14/2025 (MT Newswires) -- National Bank has raised its price target on Gildan Activewear ( GIL ) to $86, from $80, and reiterated its Outperform rating.

The company announced its acquisition on HanesBrands on Wednesday.

Analyst Vishal Shreedhar is constructive on the combination given the improved diversification and strong synergies.

"If GIL shows signs of improving performance in retail (consistent sales and earnings growth), and continued good execution in wholesale, we see strong share return potential aided by near-term accelerated growth (synergies), and possible multiple expansion over time (less cyclicality)," Shreedhar writes.

In the interim, National Bank believes the combined entity will trade at a discount to GIL's historical range given HanesBrands' lacklustre historical performance.

Price: 78.36, Change: +2.74, Percent Change: +3.62