Gildan Activewear (NYSE:GIL) stock slid on Monday as TD Bank analyst Brian Morrison removed his recommendation on the stock.

He cited a weakening North American economic outlook for 2023 as a key concern in the near term given difficult year over year comparisons. Additionally, a double-digit gain for the stock in the past month likely set shares up for a near-term cooldown.

“Our channel checks illustrate a mixed demand picture across Gildan’s portfolio in Q4/22,” Morrison wrote on Monday. “Although pricing remains favorable, we anticipate a degree of commodity pressure to contribute to a lower year over year margin that was outsized last year. Overall, we anticipate EPS to decline year over year and demand/commodity headwinds to persist in early 2023.”

Morrison therefore downgraded the stock to Hold from a prior Buy and cut his price target to $36 from $43. The Canadian apparel company also carries a high risk designation.

“Although we remain positive that share gains across its focus verticals will drive mid-term growth, it is difficult to envision attractive top-line growth in the near term, given the current economic outlook,” Morrison concluded. “This, along with modest commodity pressure flowing through inventory, may lead to margin degradation in H1/23.”

Gildan Activewear (GIL) stock slipped 1.71% on Monday.

Read more on why UBS sees the stock as top pick in 2023.