Gildan Activewear (NYSE: GIL) Navigates Fraud Allegations and Price Target Adjustments

Font: Financial Modeling Prep  • Jun 17, 2026

• Scotiabank maintained an "Outperform" rating for Gildan Activewear (NYSE: GIL) but lowered its price target from $72.00 to $65.00.
• Gildan is currently under investigation by Bleichmar Fonti & Auld LLP for potential securities fraud, specifically "channel stuffing" allegations.
• Following a short-seller report, Gildan's stock experienced an 18.75% drop but has since shown a 5.91% daily gain, trading at $53.32.

Gildan Activewear (NYSE: GIL) is a Canadian manufacturer of basic apparel, including t-shirts, underwear, and socks. The company supplies its products to screen printers, retailers, and brand companies. On June 17, 2026, the investment bank Scotiabank maintained its "Outperform" rating for Gildan, suggesting it expects the stock to perform better than the overall market.

However, as highlighted by TheFly, Scotiabank lowered its price target for the stock to $65.00 from its previous target of $72.00. A price target is an analyst's projection of a stock's future price. At the time of the report, Gildan's stock price was $53.06, which is below the new, lower target.

This adjustment comes amid serious allegations. The law firm Bleichmar Fonti & Auld LLP is investigating Gildan for potential securities fraud. The investigation centers on claims of "channel stuffing," a practice where a company sends more products to its distributors than they can sell to falsely inflate revenue numbers.

These allegations, which came from a short-seller report, had a significant impact. As reported by Business Wire, the news caused Gildan's stock to fall by 18.75% on June 16, 2026. In response, Gildan issued a statement expressing confidence in its financial reporting and confirming its 2026 financial guidance.

Following the sharp decline, the stock has shown some recovery. It is currently trading at $53.32, a daily gain of 5.91%. The stock's 52-week range is between a low of $46.00 and a high of $73.70. The company has a total market value, or market capitalization, of approximately $8.16 billion.