soared by more than 20% in afternoon trading on Tuesday, after the company was upgrade by UBS.
The T-shirt, socks and underwear maker has been speeding forward since its
earnings announcement last week, which forecast a turnaround in gross margins during the second half of the year.
Since the announcement on May 14, shares are up more than 50% to $16.45. During the 52-week period, shares have been trading between $5.66 and $30.36 a share.
The company was upgraded to buy from neutral, and UBS analyst hiked its target price to $19 a share from $15, citing improving margins and strength in retail sales and international markets.
"Gildan is gaining U.S. market share at an accelerating rate, which we believe underscores Gildan's exceptional manufacturing and supply-chain capabilities," analyst Vishal Shreedhar wrote in a note to clients.
Last week, the company posted an
83% plunge in its second-quarter profits and missed analysts' expectations. Nonetheless, investors reacted favorably to news that Gildan expects gross margins to turn around in the second half of the year.
Copyright 2009 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.