Gildan Activewear could be the answer to investor concerns over tariffs on China and sourcing in Asia, according to Citi. “We believe GIL is in a relatively strong position when it comes to tariffs as they manufacture most of their product in Honduras while several key competitors source from Asia (where the currently-delayed reciprocal tariffs are significantly higher than the 10% rate in Honduras),” analyst Paul Lejuez wrote in a Wednesday note. Citi reiterated a buy rating on the clothing manufacturer but trimmed its price target to $60 per share from $62. Citi’s forecast implies 43% upside from Tuesday’s $41.85 closing price. Citi also opened a 30-day positive catalyst watch on the stock. GIL YTD mountain Gildan Activewear stock in 2025. U.S.-traded shares gained roughly 2% on Wednesday, and they have advanced nearly 4% so far this week. President Donald Trump’s trade war has troubled markets and retail stocks in particular in recent weeks, especially his 145% duty on China . The levy on Beijing has stayed in place even as Trump paused his higher “reciprocal” tariff rates on most countries, although a baseline 10% duty has been left in place for many nations. Honduras is subject to only the 10% baseline tariff and not the higher targeted rate that is specific to particular nations, the analyst said. Lejuez said Gildan sources some of its materials from the U.S., including cotton, and the company also operates yarn-spinning facilities for its fabrics domestically. This mix could result in Gildan’s full products not being subject to the entire 10% tariff enacted by Trump. Gildan could also capture more market share for customers who are looking to find manufacturing away from China and Asia more broadly, he said. Further, market-wide concern over the implications of tariffs could have forced investors to unnecessarily oversell Gildan stock, Lejuez noted, and shares could also benefit from what he expects to be better-than-expected first-quarter results due April 29. “With shares down 24% from its February high and 8% since 4/2, we believe the market is overlooking GIL as a winner in the new tariff landscape,” the analyst said. Get Your Ticket to Pro LIVE Join us at the New York Stock Exchange! Uncertain markets? Gain an edge with CNBC Pro LIVE , an exclusive, inaugural event at the historic New York Stock Exchange. In today’s dynamic financial landscape, access to expert insights is paramount. As a CNBC Pro subscriber, we invite you to join us for our first exclusive, in-person CNBC Pro LIVE event at the iconic NYSE on Thursday, June 12. Join interactive Pro clinics led by our Pros Carter Worth, Dan Niles and Dan Ives, with a special edition of Pro Talks with Tom Lee. You’ll also get the opportunity to network with CNBC experts, talent and other Pro subscribers during an exciting cocktail hour on the legendary trading floor. Tickets are limited!
