Gildan's Guidance Cut Brings Out the Bear Notes

At least nine analysts have issued bear notes in response

Digital Content Manager
Oct 18, 2019 at 9:31 AM
facebook X logo linkedin

Canada-based apparel manufacturer Gildan Activewear Inc (NYSE:GIL) is eyeing its biggest one-day dip in over 10 years today, down 33.6% at $23.50, after the firm announced its preliminary third-quarter results, projecting a weaker-than-expected full-year sales outlook, and a drop for its third-quarter. The forecast has knocked Gildan to the bottom of the New York Stock Exchange today.  

The dismal outlook has garnered plenty of analyst attention, with at least nine in coverage issuing bear notes, including BofA-Merrill Lynch -- which hit GIL with a double-downgrade to "underperform" from "buy," and a price target cut to $22.83 from $44.14. Stifel got in on the action as well, slashing its price target to $22.83, and cutting its rating to "hold" from "buy."

The consensus 12-month price target of $33.89 is now a whopping 44% premium to current levels. What's more, prior to today's drubbing, the majority of those in coverage considered GIL a "strong buy" -- leaving the door open for even more headwind-inducing analyst attention. 

This bullish analyst sentiment doesn't come as a surprise, though. While the stock has cooled since its late-July all-time peak of $40.40, at last night's close it still boasted a 16.5% year-to-date, with recent support emerging at the $34.50 region. GIL has sliced through both of these levels today though, and is now trading back near its 2016 six-year lows. 


Unlock Weekend Profits with Chris Prybal's Favorite Strategy Up +487.5% in 2024

With the markets going left, right, and sideways, you need to have a plan now more than ever. 

Expert Trader Chris Prybal is no stranger to volatility, and has mastered finding big stock rallies while other traders aren't looking over the weekend. Rallies that produced gains like +207% on RTX calls, +236% on MARA calls, and +238% on NET calls.

A few simple moves on Sunday at 7pm could be the “Secret Sauce” your portfolio needs to not just stay afloat, but make unprecedented gains in this turbulent market.

Don’t sit on the sidelines, beat the market with Chris Prybal's strategy. Join him now!




Rainmaker Ads CGI