GAP (NYSE:GAP) Price Target Raised to $27.00

Key Points

• Bank of America raised GAP’s price target to $27 from $26 while maintaining a “neutral” rating, implying roughly 29.6% upside; analysts overall maintain a consensus “Hold” rating with an average target of $26.64.
• GAP reported quarterly EPS of $0.52, beating estimates of $0.48, but revenue declined 2% year over year to $3.65 billion and fell short of expectations. Old Navy remained the primary weakness, contributing to comparable-sales pressure.
• Management set fiscal 2026 EPS guidance at $2.35–$2.45, above the approximately $2.33 analyst consensus, as stronger performance from the Gap and Banana Republic brands and improved margins supported the outlook.

GAP (NYSE:GAP - Get Free Report) had its price objective increased by investment analysts at Bank of America from $26.00 to $27.00 in a report released on Friday,Benzinga reports. The firm currently has a "neutral" rating on the stock. Bank of America's price target would indicate a potential upside of 29.59% from the stock's previous close.

Several other research analysts also recently commented on GAP. Morgan Stanley reissued an "equal weight" rating and set a $21.00 price target on shares of GAP in a research note on Monday, July 6th. Wells Fargo & Company reaffirmed a "cautious" rating on shares of GAP in a research note on Friday. JPMorgan Chase & Co. reiterated a "neutral" rating and issued a $27.00 target price (down from $35.00) on shares of GAP in a research report on Friday, May 29th. Jefferies Financial Group lowered shares of GAP from a "buy" rating to a "hold" rating and cut their price target for the company from $29.00 to $23.00 in a research report on Wednesday, August 12th. Finally, The Goldman Sachs Group reduced their price objective on GAP from $28.00 to $25.00 and set a "buy" rating on the stock in a research note on Thursday, August 20th. Two research analysts have rated the stock with a Strong Buy rating, five have given a Buy rating, ten have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average price target of $26.64.

GAP Trading Down 1.5%

Shares of GAP stock opened at $20.84 on Friday. The business has a 50-day moving average price of $20.01 and a two-hundred day moving average price of $22.87. GAP has a 12-month low of $18.11 and a 12-month high of $29.36. The company has a quick ratio of 1.08, a current ratio of 1.81 and a debt-to-equity ratio of 0.41. The firm has a market cap of $7.50 billion, a P/E ratio of 8.20, a price-to-earnings-growth ratio of 1.25 and a beta of 2.05.

GAP (NYSE:GAP - Get Free Report) last announced its quarterly earnings data on Thursday, August 27th. The company reported $0.52 EPS for the quarter, beating the consensus estimate of $0.48 by $0.04. The firm had revenue of $3.65 billion for the quarter, compared to analyst estimates of $3.69 billion. GAP had a return on equity of 21.13% and a net margin of 6.25%.The company's revenue was down 2.0% on a year-over-year basis. During the same period in the prior year, the company earned $0.57 EPS. GAP has set its FY 2026 guidance at 2.350-2.450 EPS. Equities analysts anticipate that GAP will post 2.33 EPS for the current fiscal year.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the business. Amundi increased its stake in shares of GAP by 3.6% during the second quarter. Amundi now owns 49,008 shares of the company's stock valued at $916,000 after purchasing an additional 1,723 shares in the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new stake in shares of GAP in the 2nd quarter worth approximately $478,000. California State Teachers Retirement System increased its position in GAP by 1,732.5% during the 2nd quarter. California State Teachers Retirement System now owns 5,116,415 shares of the company's stock valued at $95,575,000 after buying an additional 4,837,214 shares in the last quarter. HB Wealth Management LLC raised its stake in GAP by 59.8% during the second quarter. HB Wealth Management LLC now owns 22,652 shares of the company's stock valued at $423,000 after buying an additional 8,477 shares during the last quarter. Finally, Angeles Wealth Management LLC bought a new stake in GAP in the second quarter worth $468,000. 58.81% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting GAP

Here are the key news stories impacting GAP this week:

• Positive Sentiment: Gap reported adjusted earnings of $0.52 per share, exceeding the $0.48 analyst consensus. Gross margin expanded 20 basis points to 41.4%, helping the company outperform operating-profit expectations despite softer sales. Gap names Michael Francis Old Navy CEO as quarterly profit beats estimates
• Positive Sentiment: Management raised fiscal 2026 EPS guidance to $2.35-$2.45, above the roughly $2.33 consensus, reflecting confidence in continued profit improvement and cost discipline. The company has also returned $726 million to shareholders through buybacks and dividends year to date. Gap lifts annual profit forecast on strength of namesake brand
• Positive Sentiment: The Gap namesake brand and Banana Republic performed better than expected, providing evidence that the company’s brand turnaround is gaining traction and offsetting weakness elsewhere. Gap rallies after Banana Republic and its namesake brand outperform expectations
• Neutral Sentiment: Michael Francis, a former retail executive with experience at Walmart and Target, will become Old Navy’s president and CEO on November 2. Investors viewed the leadership change as a potential turnaround catalyst, although execution will take time. Gap announces leadership transition at Old Navy
• Negative Sentiment: Quarterly net sales fell 2% year over year to $3.65 billion, below the $3.69 billion consensus, while comparable sales declined 1%. Old Navy was the main weakness, prompting the leadership overhaul and limiting the outlook for revenue growth. Gap Inc. Reports Second Quarter Fiscal 2026 Results

GAP Company Profile

Gap Inc is a global specialty retailer renowned for its portfolio of apparel and accessories brands, including Gap, Banana Republic, Old Navy and Athleta. The company designs, sources and markets clothing across a broad price range and style spectrum, catering to men, women and children. Its offerings extend from everyday wardrobe essentials such as denim, tees and outerwear to performance and lifestyle pieces, reflecting each brand's distinct identity and price point.

Founded in San Francisco in 1969 by Donald and Doris Fisher, Gap Inc has grown into one of the world's largest apparel companies.

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