Investment Thesis
We believe that Gildan Activewear's (GIL) recent sell-off presents a good opportunity for a patient medium-long term investor.
There may be short-term pressure, but there are a number of catalysts moving forward:
- Activewear is a growing market
- GIL is moving towards more profitable private label brands
- Margins are set to increase from new Bangladesh manufacturing facilities
- International growth will increase in the future.
The market is overly bearish on GIL, and we see short-term upside of 12%, with more in the medium-long term.
Catalysts
Growth
Activewear Industry
Activewear is a huge category at