Here’s Why UBS Analyst Jay Sole Downgraded Gildan (GIL)

What happened: UBS analyst Jay Sole downgraded Gildan Activewear (GIL) to Neutral from Buy on November 6 and cut his price target to $38 from $71 after the third-quarter report. Key numbers: Price target cut to $38 from $71. Adjusted operating margin 27.0% vs guidance of about 26%. Adjusted EPS rose 54.0% to $1.54. Free cash flow $605.7 million. Buyback of up to about 5% of shares. Why it matters: The downgrade followed weak guidance in the quarter, even as profitability beat the company's own margin guidance and savings from the HanesBrands purchase began to show. Market: -0.5% today ($342.37), +26.6% YTD, 0.8x vol — as of 23:46 UTC

UBS analyst Jay Sole downgraded Gildan Activewear (GIL) to Neutral from Buy on November 6 and cut his price target to $38 from $71 after the third-quarter report.

The downgrade followed weak guidance in the quarter, even as profitability beat the company's own margin guidance and savings from the HanesBrands purchase began to show. Market: -0.5% today ($342.37), +26.6% YTD, 0.8x vol — as of 23:46 UTC