Gildan Activewear (GIL) Stock Forecast & Price Target

Gildan Activewear's acquisition of Hanesbrands is expected to enhance its market share and produce a strong value outlook, reflected in a projected 2026 price-to-earnings ratio of 13.1x, indicating robust growth potential from 2026 to 2028. The merger is anticipated to yield approximately $6.9 billion in annual revenues on a pro forma basis, with Gildan and Hanes contributing nearly equal portions, thereby creating a more diversified and resilient business model. Additionally, investor sentiments suggest improved organic revenue growth, particularly with Hanes projecting slight revenue increases and expanded margins through manufacturing efficiencies, which further strengthens Gildan’s positive financial outlook.

Gildan Activewear faces significant challenges that contribute to a negative outlook on its stock, including potential trade policy restrictions affecting its key manufacturing regions and an anticipated economic recession that could lead to decreased industry volumes. Additionally, the company is experiencing significant raw material cost increases, notably in cotton, which could result in margin compression. Historical revenue trends also raise concerns, as Gildan and its recent acquisition Hanesbrands have struggled with organic revenue declines, further complicating the path to achieving projected mid-single digit revenue growth.