Black Friday Sale! Save huge on InvestingProGet up to 60% off

Scotiabank maintains $40.50 share target on Gildan amid sale talks

EditorNatashya Angelica
Published 03/20/2024, 03:31 PM
© Reuters.
GIL
-

On Wednesday, Scotiabank reaffirmed its Sector Outperform rating and $40.50 price target for shares of Gildan Activewear (NYSE:GIL), in light of recent developments regarding the company's future. Gildan's board of directors is considering a sale of the company, as reported by the Globe and Mail.

Following the market's close on the same day, Gildan confirmed via a press release that it has received a takeover proposal. In response, the board has established a special committee composed of independent directors to evaluate this proposal, along with other potential alternatives.

The press release from Gildan Activewear did not disclose the identity of the interested party or the financial details of the takeover approach. Still, it emphasized the formation of the special committee to ensure a thorough review process. The committee's role will be to assess the takeover bid in the context of Gildan's strategic plans and to consider the best interests of the company and its shareholders.

According to a source cited in the Globe and Mail article, any prospective buyer would likely have to offer more than $42 per share to acquire Gildan Activewear. This figure suggests a potential premium over the current price target set by Scotiabank. The news of the takeover approach has put a spotlight on Gildan's stock, as investors and analysts alike will be closely monitoring the situation for further developments.

Gildan Activewear has not provided a timeline for the review process or any decision regarding the takeover proposal. The company has stated that further announcements will be made if and when necessary. Until then, the market is left to await the outcome of the board's review and the potential impact on Gildan's share price.

The apparel manufacturer's stock performance and investor sentiment may be influenced by the ongoing review of the takeover proposal. As the situation unfolds, Gildan's shareholders will be looking for signs of a favorable outcome from the board's evaluation of the proposal and any competing alternatives that may arise.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.