Morgan Stanley Boosts GAP (NYSE:GAP) Price Target to $23.00

Key Points

• Morgan Stanley raised GAP’s price target to $23 from $21 while maintaining an “equal weight” rating, implying about 3.9% downside from the prior close. The broader analyst consensus remains “Hold,” with an average target of $26.93.
• GAP reported quarterly EPS of $0.52, beating the $0.48 consensus, but revenue fell 2% year over year to $3.65 billion and missed estimates. The company raised fiscal 2026 EPS guidance to $2.35–$2.45.
• Shares rose to $23.93, while investors focused on continued weakness at Old Navy; GAP appointed Michael Francis as the brand’s incoming president and CEO to improve performance.

GAP (NYSE:GAP - Get Free Report) had its target price boosted by research analysts at Morgan Stanley from $21.00 to $23.00 in a research note issued on Friday,Benzinga reports. The brokerage currently has an "equal weight" rating on the stock. Morgan Stanley's price target would suggest a potential downside of 3.89% from the stock's previous close.

GAP has been the topic of a number of other research reports. Wells Fargo & Company reissued a "cautious" rating and set a $23.00 price objective on shares of GAP in a report on Friday. The Goldman Sachs Group reduced their target price on shares of GAP from $28.00 to $25.00 and set a "buy" rating on the stock in a research report on Thursday, August 20th. Bank of America increased their price target on shares of GAP from $26.00 to $27.00 and gave the company a "neutral" rating in a research note on Friday. Evercore set a $20.00 price target on shares of GAP and gave the company an "in-line" rating in a report on Friday, May 29th. Finally, Weiss Ratings cut shares of GAP from a "hold (c+)" rating to a "hold (c)" rating in a research report on Tuesday, July 28th. Two investment analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating, ten have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, GAP currently has an average rating of "Hold" and a consensus target price of $26.93.

GAP Price Performance

GAP stock traded up $3.14 on Friday, reaching $23.93. The company's stock had a trading volume of 12,147,696 shares, compared to its average volume of 7,777,419. The business's fifty day moving average price is $20.01 and its 200 day moving average price is $22.87. The company has a debt-to-equity ratio of 0.41, a quick ratio of 1.08 and a current ratio of 1.81. The company has a market cap of $8.61 billion, a price-to-earnings ratio of 9.42, a PEG ratio of 1.25 and a beta of 2.05. GAP has a twelve month low of $18.11 and a twelve month high of $29.36.

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

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. Amundi grew its position in shares of GAP by 3.6% during the 2nd quarter. Amundi now owns 49,008 shares of the company's stock worth $916,000 after buying an additional 1,723 shares during the period. VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new position in GAP in the second quarter valued at approximately $478,000. California State Teachers Retirement System lifted its holdings in GAP by 1,732.5% in the second 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 during the period. HB Wealth Management LLC boosted its stake in GAP by 59.8% in the second quarter. HB Wealth Management LLC now owns 22,652 shares of the company's stock valued at $423,000 after acquiring an additional 8,477 shares during the last quarter. Finally, Angeles Wealth Management LLC bought a new position in GAP in the second quarter valued at approximately $468,000. Institutional investors own 58.81% of the company's stock.

More GAP News

Here are the key news stories impacting GAP this week:

• Positive Sentiment: Old Navy leadership shake-up: Gap appointed retail veteran Michael Francis, formerly associated with Walmart and Target, as Old Navy’s president and CEO effective November 2. Investors appear optimistic that his experience can address the brand’s weak sales and improve execution. Gap shares jump after Old Navy brings in new CEO to revive brand
• Positive Sentiment: Profit beat and higher EPS outlook: Second-quarter adjusted earnings were $0.52 per share, exceeding the $0.48 consensus estimate. Gap raised its fiscal 2026 EPS guidance to $2.35-$2.45, above the $2.33 analyst consensus, helped by gross-margin expansion and strength at the namesake Gap brand. Gap lifts annual profit forecast on strength of namesake brand
• Positive Sentiment: Analyst support: BTIG raised its price target from $26 to $27 and maintained a Buy rating. Bank of America also lifted its target to $27, although it retained a Neutral rating. The new targets imply substantial upside from the referenced $20.84 price. Analyst price-target updates
• Neutral Sentiment: Banana Republic and the namesake Gap brand reportedly performed better than expected, while the company continues emphasizing reduced discounting and marketing partnerships, including Hailey Bieber, to support brand momentum. Gap’s new playbook: Less discounting, more Hailey Bieber
• Negative Sentiment: Sales remain pressured: Quarterly revenue fell 2% year over year to $3.65 billion, below the $3.69 billion consensus, and comparable sales declined 1%. Old Navy was the primary weakness, prompting the CEO replacement; full-year revenue guidance of approximately $15.6 billion is also slightly below expectations. Gap announces new Old Navy CEO following sluggish quarterly sales

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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