The Globe and Mail reports in its Thursday edition that National Bank Financial analyst Vishal Shreedhar believes Gildan Activewear is a credible investment option for financial buyers. The Globe's David Leeder writes that Mr. Shreedhar continues to rank Gildan "outperform." Mr. Shreedhar saw his share target soar $6 to $58. Analysts on average target the shares at $54.84. The Globe reported on Tuesday that Gildan had received a takeover approach from a potential buyer. Mr. Shreedhar says in a note: "There are already participants in the wholesale imprinted industry that have private equity participation, including some of Gildan's competitors and customers. Further, we believe that Gildan's high returns on capital (averaging approximately 16 per cent over 10 years), dominant market share in the wholesale imprinted market, low financial indebtedness (net debt to EBITDA of 1.5 times as of Q4/23), and the potential for improved execution (if the board's allegations regarding the former CEO's lack of engagement are accepted) make it an attractive candidate. These positive indications are offset in part by Gildan's high cyclicality, which constricts debt leverage thresholds, and ongoing macroeconomic uncertainty."