BUZZ-Gildan Activewear Inc: DA Davidson cuts rating, PT

Mon Oct 26, 2015 12:07pm EDT
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** Canadian apparel maker's shares down 4.6 pct at C$36.38; U.S.-listed shares down 4.3 pct at $27.70

** DA Davidson & Co cuts rating on U.S.-listed stock to "neutral" from "buy" and PT to $31 from $38

** Analysts expect sluggish sales to hurt the company as Wal-Mart Stores Inc, which is Gildan's major customer, sees a soft retail environment in the U.S.

** "The overall retail environment seemingly presents more risk than opportunity," analysts say

** Wal-Mart on Oct. 14 warned that higher wages as well as spending on e-commerce and lower prices would cut earnings per share by as much as 12 pct in the next fiscal year

** Of 18 brokerages covering the stock, 4 have "hold", while others have "buy" or higher; median PT is $36

** Up to Friday's close, U.S.-listed stock had fallen nearly 18 pct since July 30, when the stock hit year high of $35.15