Gap Snaps Up Context-Based 4 Casting Ltd.

Gap Inc. (GPS) announced the acquisition of Context-Based 4 Casting Ltd. (CB4), a start-up based in Tel Aviv and New York. Gap operates as a global apparel retail company.

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Gap will gain access to CB4’s cutting-edge AI and machine learning tools, which will help transform its retail operations, increase sales, and improve the customer experience through predictive analytics and demand sensing. Also, CB4’s award-winning technology makes recommendations that support new sales and increases the number of satisfied customers.

The deal has been brokered by Gap’s Strategic Growth Office. As per the agreed terms, CB4’s team will become part of Gap as full-time employees. (See Gap stock charts on TipRanks)

Chief Growth Transformation Officer, and Head of the Strategic Growth Office at Gap, Sally Gilligan, said, “We believe artificial intelligence and machine learning will shape the future of our industry. Gap Inc. has experience working with CB4’s world-class data scientists, so we understand the impact and the wide applications their science can have across sales, inventory and consumer insights, as well as its potential to unlock value and enhance the customer experience.”

Last month, Argus Research analyst Taylor Conrad reiterated a Hold rating on the stock. The analyst remains concerned about the company’s high debt levels and low margins.

Based on 2 Buy and 6 Hold ratings, the stock has a Hold consensus rating. The average Gap price target of $36.57 implies 53.9% upside potential from current levels.

According to TipRanks’ Smart Score system, Gap gets a 5 out of 10, which indicates that the stock is likely to perform in line with market averages.