Gap Inc (GAP – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Lorraine Hutchinson from Bank of America Securities reiterated a Hold rating on the stock and has a $25.00 price target.
Lorraine Hutchinson’s rating is based on a combination of factors, including Gap Inc’s recent financial performance and future outlook. The company reported a stronger-than-expected fourth quarter, with adjusted earnings per share surpassing estimates, driven by positive comparable sales at its brands like Old Navy, Gap, and Banana Republic. Despite this positive performance, Hutchinson maintains a cautious stance due to concerns about further margin improvements.
Additionally, while there is optimism around cost-saving measures and sales growth, challenges remain, particularly with the Athleta brand, which has struggled to attract its core customer base. The decision to lower the price objective reflects a more conservative valuation approach, aligning it with peer averages. Overall, the Hold rating reflects a balance between encouraging sales trends and the need for continued operational improvements.
In another report released on March 4, Telsey Advisory also maintained a Hold rating on the stock with a $26.00 price target.
Based on the recent corporate insider activity of 85 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of GAP in relation to earlier this year.
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