Gildan activist says its business strategy would double profits

. is heating up, with an activist fund manager and the clothing manufacturer’s ousted co-founder tabling their strategy for boosting the company’s performance ahead of next month’s annual meeting.

The average 12-month target price for Gildan shares among equity research analysts who cover the stock is US$40.79. Within days of his dismissal, Browning West launched its campaign to overturn the decision. Since then, institutional investors owning approximately 35 per cent of Gildan’s stock, including domestic fund managers Jarislowsky Fraser and Turtle Creek Asset Management, have come out in support of Mr. Chamandy.

Brown West also wants to more than double the amount of cash Gildan uses for shareholder-friendly stock buybacks. Over the past 25 years, Gildan devoted 31 per cent of its cash flow to share buybacks. Browning West proposed the company boost stock buybacks to 68 per cent of its cash flow.

Canada Canada Latest News, Canada Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Browning West releases plan for Gildan to cut costs and grow market shareAn activist investor seeking to reinstate Glenn Chamandy as chief executive of Gildan Activewear Inc. says it wants to reduce costs at the clothing manufacturer and increase its market share in a bid to boost its earnings and share price.
Source: BNNBloomberg - 🏆 83. / 50 Read more »