TD Cowen Issues Positive Forecast for GAP (NYSE:GAP) Stock Price

Key Points

• TD Cowen raised GAP’s price target to $27 from $23 and maintained a “buy” rating, implying 13.68% upside from the previous close.
• GAP shares rose 14.2% to $23.75 after the company reported quarterly EPS of $0.52, beating estimates, although revenue declined 2% year over year to $3.65 billion and fell short of expectations.
• Analyst sentiment remains mixed, with a consensus “hold” rating and an average price target of $27.21; institutional investors own approximately 58.81% of the stock.

GAP (NYSE:GAP - Get Free Report) had its target price lifted by TD Cowen from $23.00 to $27.00 in a research report issued to clients and investors on Friday,Benzinga reports. The brokerage presently has a "buy" rating on the stock. TD Cowen's price target would indicate a potential upside of 13.68% from the company's previous close.

Other equities research analysts also recently issued reports about the stock. Weiss Ratings downgraded shares of GAP from a "hold (c+)" rating to a "hold (c)" rating in a research report on Tuesday, July 28th. BTIG Research raised their price target on shares of GAP from $26.00 to $27.00 and gave the company a "buy" rating in a research report on Friday. Morgan Stanley lifted their price target on GAP from $21.00 to $23.00 and gave the company an "equal weight" rating in a research note on Friday. Bank of America boosted their price objective on GAP from $26.00 to $27.00 and gave the stock a "neutral" rating in a report on Friday. Finally, Wells Fargo & Company restated a "cautious" rating and issued a $23.00 target price on shares of GAP in a report on Friday. Two 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 issued a Sell rating to the company's stock. According to data from MarketBeat.com, GAP currently has a consensus rating of "Hold" and an average target price of $27.21.

GAP Stock Up 14.2%

NYSE GAP traded up $2.96 during mid-day trading on Friday, hitting $23.75. The company's stock had a trading volume of 13,678,246 shares, compared to its average volume of 7,799,565. The company's 50 day simple moving average is $20.01 and its 200 day simple moving average is $22.87. GAP has a twelve month low of $18.11 and a twelve month high of $29.36. The company has a current ratio of 1.81, a quick ratio of 1.08 and a debt-to-equity ratio of 0.41. The firm has a market capitalization of $8.55 billion, a price-to-earnings ratio of 9.35, a PEG ratio of 1.25 and a beta of 2.05.

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

Hedge Funds Weigh In On GAP

Institutional investors have recently added to or reduced their stakes in the stock. BlackRock Inc. purchased a new stake in GAP during the second quarter worth about $428,824,000. California State Teachers Retirement System boosted its stake 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 acquiring an additional 4,837,214 shares during the last quarter. Ameriprise Financial Inc. grew its position in shares of GAP by 4.1% during the 3rd quarter. Ameriprise Financial Inc. now owns 4,588,800 shares of the company's stock valued at $98,154,000 after acquiring an additional 180,991 shares during the period. Geode Capital Management LLC grew its position in shares of GAP by 0.3% during the 4th quarter. Geode Capital Management LLC now owns 4,291,846 shares of the company's stock valued at $110,750,000 after acquiring an additional 14,141 shares during the period. Finally, LSV Asset Management increased its stake in shares of GAP by 3.6% during the 4th quarter. LSV Asset Management now owns 3,462,702 shares of the company's stock worth $88,645,000 after purchasing an additional 121,001 shares during the last quarter. 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 overhaul: Gap appointed retail veteran Michael Francis as Old Navy’s president and CEO, effective November 2. Francis, who has experience at Walmart and Target, will replace Haio Barbeito and is expected to address weakening sales at the company’s largest brand. Gap shares jump after Old Navy brings in new CEO to revive brand
• Positive Sentiment: Quarterly profit beat and higher EPS forecast: Second-quarter adjusted earnings of $0.52 per share exceeded the $0.48 consensus estimate. Gross margin expanded to 41.4%, and Gap raised fiscal 2026 EPS guidance to $2.35–$2.45, above the $2.33 analyst consensus. The namesake Gap and Banana Republic brands reportedly outperformed expectations, helping offset weakness elsewhere. Gap lifts annual profit forecast on strength of namesake brand
• Positive Sentiment: Shareholder returns and operating discipline: Gap said it returned $726 million to shareholders through buybacks and dividends year to date, while exceeding reported and adjusted operating-margin expectations. Gap Inc. Reports Second Quarter Fiscal 2026 Results
• Neutral Sentiment: Analyst views improved but remain mixed: BTIG and Bank of America raised their price targets to $27, while BTIG rated the stock “buy” and Bank of America remained “neutral.” Morgan Stanley lifted its target to $23 but maintained an “equal weight” rating, indicating limited near-term conviction.
• Negative Sentiment: Sales remain pressured: Second-quarter revenue fell 2% year over year to $3.65 billion, below the $3.69 billion consensus, while comparable sales declined 1%. Fiscal-year revenue guidance of approximately $15.6 billion is also slightly below expectations, underscoring continued challenges at Old Navy and in a cautious consumer environment. Gap announces new Old Navy CEO following sluggish quarterly sales

About GAP

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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