In a report released today, Alexandra Straton from Morgan Stanley maintained a Buy rating on Gap Inc (GAP – Research Report), with a price target of $30.00.
Alexandra Straton’s rating is based on Gap Inc’s impressive fourth-quarter performance and promising future outlook. The company exceeded expectations with its earnings, showcasing a consistent track record of beating EPS estimates since the new CEO took over. This consistency underlines the effectiveness of their turnaround strategies and strengthens confidence in the company’s long-term earnings potential.
Furthermore, Gap Inc’s valuation remains attractive, especially considering its unique profitability expansion potential compared to its peers. The management’s guidance for 2025 earnings per share is above market expectations, driven by strong sales and profitability, particularly in the Old Navy and Gap brands. This guidance appears achievable, if not conservative, which supports the Buy rating and a price target that suggests significant upside potential.
In another report released today, J.P. Morgan also maintained a Buy rating on the stock with a $30.00 price target.