11:13 AM EDT, 06/17/2026 (MT Newswires) -- RBC Capital on Wednesday said it has a neutral take on a Tuesday short-seller report by Jehoshaphat on Gildan Activewear ( GIL ) that flags a downside to the company's 2026 and 2027 consensus revenue estimate due to several factors.

Gildan issued a statement reiterating its 2026 guidance and stated that it is confident that its "current disclosure provides its investors with accurate and comprehensive information regarding Gildan, including with respect to its financial information and governance practices".

Analyst Ryland Conrad, who is maintaining an outperform rating and US$78.00 price target on the stock, agrees that while the elevated days sales outstanding (DSO) mentioned in the short report warrants investor scrutiny, it was important to note that management maintained 2026 guidance and the expectation that working capital will dip to less than 30% of revenue by the end of 2026.

"In our view, Gildan's medium-term growth algorithm (>20% EPS CAGR through 2028) remains intact supported by continued market share gains and cost synergy realization, and the pullback provides an attractive accumulation opportunity with Gildan now trading at 10.7x FTM P/E versus ~14.0x exiting 2025, a long-term historical average of ~15.5x and a 2022 trough of ~8.5x," he adds.

Above-market revenue growth and higher DSO reflect an evolving landscape for activewear, Conrad points out. Gildan's above-market growth also reflected market share gains against the backdrop of a narrowing competitive landscape in North America: The exits of Delta Apparel and Fruit of the Loom alone created an estimated ~US$470 million revenue opportunity for the company.

Price: 74.38, Change: +3.99, Percent Change: +5.67