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Shares of

Gildan Activewear

(GIL) - Get Gildan Activewear Inc. Report

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.

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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.

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