Why Gildan Activewear Stock Triumphed on Tuesday
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By Eric Volkman – Dec 16, 2025 at 6:01PM ESTKey PointsAn analyst raised his price target on the shares by almost 38%.He was extremely encouraged by a recent acquisition.These 10 Stocks Could Mint the Next Wave of Millionaires ›NYSE: GILGildan ActivewearMarket Cap$11BToday's Changeangle-down(5.67%) $3.40Current Price$63.36Price as of December 16, 2025 at 3:58 PM ETOne market professional tracking the company believes a new asset will be very synergistic.A robust price target increase from an analyst tracking clothing conglomerate Gildan Activewear (GIL +5.67%) put lots of energy into the stock on Tuesday. Taking a cue from that move, investors pushed into the stock, propelling it to a nearly 6% price gain on the day. More in store The analyst behind the move was UBS's Jay Sole. Before the market open, he raised his Gildan price target nearly 38% to $110 per share, from his previous level of $80. He also maintained his buy recommendation on the stock. Image source: Getty Images. Sole's new take on Gildan is based largely on the company's recent acquisition of peer apparel company Hanesbrands, which is chiefly known for its undergarments. In the analyst's view, owning the new asset gives Gildan a scope it couldn't achieve purely by itself. Among other benefits, Hanesbrands's retail presence should help lift the visibility of Gildan's offerings. Another benefit of the acquisition is the potential sell-off of Hanesbrands's Australia business. Sole believes the proceeds from such a divestment could be used to reduce Gildan's debt, and perhaps consider reinstating share buybacks. ExpandNYSE: GILGildan ActivewearToday's Change(5.67%) $3.40Current Price$63.36Key Data PointsMarket Cap$11BDay's Range$60.50 - $63.6352wk Range$37.16 - $63.63Volume73KAvg Vol1.5MGross Margin31.43%Dividend Yield1.51% Lending a hand The Hanesbrands deal, which closed at the beginning of December, has brought a highly complementary and synergistic asset into the Gildan fold. I agree with the UBS pundit that Hanesbrands has the power to increase its new owner's presence on store shelves, thereby improving its overall fundamentals. I'd be a buy on Gildan stock too. About the AuthorEric Volkman is a contributing Motley Fool finance and stock market analyst. Previously, Eric was an equities analyst at European investment bank Raiffeisen Capital and Investment. He’s also been a freelance finance writer since 1995. He studied at Susquehanna University.TMFVolkmanRead NextNov 6, 2021 •By Motley Fool TranscribersGildan Activewear, inc (GIL) Q3 2021 Earnings Call TranscriptAug 5, 2021 •By Motley Fool TranscribersGildan Activewear, inc (GIL) Q2 2021 Earnings Call TranscriptMay 6, 2021 •By Motley Fool TranscribersGildan Activewear Inc (GIL) Q1 2021 Earnings Call TranscriptFeb 25, 2021 •By Motley Fool TranscribersGildan Activewear Inc (GIL) Q4 2020 Earnings Call TranscriptOct 30, 2020 •By Motley Fool TranscribersGildan Activewear Inc (GIL) Q3 2020 Earnings Call TranscriptJul 31, 2020 •By Motley Fool TranscribersGildan Activewear Inc (GIL) Q2 2020 Earnings Call Transcript