Gildan Activewear (GIL) is expected to post "solid" Q2 results and reiterate its 2026 guidance, but that is unlikely to settle investor concerns over the risk of a significant revenue miss in the second half, UBS Securities said in a Thursday research note.

The investment firm said investors are seeking greater detail on the company's balance sheet and industry trends than management is likely to provide, leaving sentiment largely unchanged.

Gildan is scheduled to report Q2 results on July 30.

The brokerage said investor sentiment could improve if the company provides bullish commentary on its accounts receivable trends, its ability to achieve its $850 million free cash flow target for 2026, channel inventory levels, relationships with key distributor partners and the drivers of its expected second-half sales acceleration.

UBS reiterated its buy rating on the stock and price target of $110 per share.

Shares of Gildan Activewear were down 3.6% in Thursday afternoon trading.

Price: 51.32, Change: -1.95, Percent Change: -3.65