The Globe and Mail reports in its Friday, May 5, edition that RBC Dominion Securities analyst Sabahat Khan has reaffirmed his "outperform" recommendation for Gildan Activewear. The Globe's David Leeder writes that Mr. Khan hiked his share target to $40 from $39 (all figures U.S.). Analysts on average target the shares at $37.44. While Gildan Activewear posted "mixed" first quarter financial results, Mr. Khan thinks its reiterated full-year outlook reflects improved margin trends and positive top-line growth through the second half of the year. On Wednesday, Gildan posted sales of $702.9-million, down 9.3 per cent year-over-year but in line with both Mr. Khan's $702.8-million estimate and the consensus forecast of $707.5-million. He says the decline was "primarily driven by lower sales volumes and unfavourable mix, partially offset by higher net selling prices." Earnings per share of 45 cents fell short of expectations (48 cents and 52 cents) as lower-than-anticipated gross margins and an increase in interest expense weighed. Mr. Khan says in a note, "Overall, the company reiterated its 2023 guidance, which calls for revenue growth in the low-single-digit range and an Adjusted EBIT margin of 18-20 per cent."