Standpoint Research reported on Thursday that they have upgraded apparel company, The Gap Inc.(GPS) to a “Hold.”
The firm announced that they have increased their rating for GPS from a “Sell” to a “Hold.”
An analyst from the firm noted, “the GAP is a name we went in-and-out of four times 2010-2012. After my latest exit in February the stock shot up by 75% in a move that had me scratching my head…When it hit $35.79 on August 20 I downgraded from Hold to Sell. The shares have since dropped 15.4% in a market that is even and are now off 20% from the October high… I would cover short positions at this time but would not go long. We would reinstate this recommendation if the stock takes another leg down to $24-$26. I think there is a 50/50 chance we get that in 2013.”
The Gap shares were mostly flat during Thursday morning trading. The stock is up 64% YTD.
The Bottom Line
Shares of The Gap (GPS) have a 1.64% dividend yield, based on last night’s closing stock price of $30.40. The stock has technical support in the $28 price area. If the shares can firm up, we see overhead resistance around the $32-$34 price levels.
The Gap Inc.(GPS) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.