JPMorgan reported on Wednesday that it has raised its price target on apparel retailer, The Gap Inc. (GPS).
The firm has reaffirmed a “Neutral” rating on GPS and had increased the company price target from $33 to $37. This price target suggests that the stock remain flat at its current price of $36.53.
An analyst from the firm commented, “GPS appears optimistic that the turn in the Gap division is more than just ‘color and weather,’ and it has the right people and processes in place now for building increased customer loyalty to the brand. This ‘lost generation’ of Gap shoppers are leaving ANF, AEO, Forever 21, H&M and Gap needs to be more ‘relevant’ and ‘part of the conversation.’ On a full-year basis, Old Navy is even bigger—worth 39% of the company’s top line compared to the Gap brand at 27% and Banana Republic at 18%. The company has taken 2.5 million feet out of the Old Navy division in the past few years in order to help make the business more productive and profitable.”
The Gap shares were mostly flat during Wednesday morning trading. The stock has increased 43% in the past year.
The Bottom Line
Shares of The Gap Inc. (GPS) have a 1.64% yield, based on Wednesday morning’s price of $36.60.
The Gap Inc. (GPS) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.