Wells Fargo analyst Ike Boruchow maintained a Buy rating on Gap Inc (GAP – Research Report) yesterday and set a price target of $30.00.
Ike Boruchow has given his Buy rating due to a combination of factors that highlight Gap Inc’s strong performance and future potential. The company has demonstrated a consistent ability to beat expectations, with a sixth consecutive quarter of solid bottom-line results. This performance is supported by high visibility and opportunities for further cost savings, which contribute to a positive outlook.
Moreover, Gap Inc has shown resilience despite macroeconomic challenges, with management observing improving trends throughout the fiscal year. The company’s strategic focus on product and marketing shifts has led to market share gains across its business segments. Additionally, Gap’s execution in the fourth quarter, particularly in women’s and men’s categories, as well as the expansion of its customer base, underscores its momentum. While Old Navy continues to outperform, the company is also addressing challenges with Athleta, aiming for a better start to the fiscal year. These factors, combined with a proactive approach to share repurchases and cost savings, underpin Boruchow’s Buy rating.
In another report released today, Morgan Stanley also maintained a Buy rating on the stock with a $30.00 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.