The Globe and Mail reports in its Wednesday edition that Stifel analyst Martin Landry began coverage on Gildan Activewear with a "buy" recommendation and a $38 (all figures U.S.) share target. The Globe's David Leeder writes that analysts on average target the shares at $37.10. Mr. Landry says Gildan Activewear's current valuation does not accurately reflect its "recently improved profitability and resulting strong return on invested capital of 22 per cent." Mr. Landry says in a note: "Gildan's valuation is 30 per cent lower than its 10-year average and near a 10-year low. This depressed valuation provides investors with a margin of safety under a scenario in which consensus estimates are too high. Gildan's end markets are cyclical, and sales could decline by 10 to 20 per cent if economic conditions worsen significantly. However, we do not model such a scenario at this point. ... Gildan has improved its profitability in recent years with its 'Back-to-Basics' initiative, reducing SG&A expenses by more than $100-million. 'The company's operating profit margin has risen to 20 per cent, the highest levels in more than 10 years." He says a "contraction" in its share price would make an "appealing entry point."