GAP (NYSE:GAP) Price Target Cut to $23.00 by Analysts at TD Cowen

Key Points

• TD Cowen lowered GAP’s price target from $26 to $23 while maintaining a “buy” rating, implying 13.62% upside from the prior close.
• Analyst sentiment remains generally positive, with GAP holding a consensus “Moderate Buy” rating and an average price target of $26.50, despite several recent target cuts and one downgrade to “hold.”
• GAP shares traded at $20.24, near their 50-day average, after the company slightly missed quarterly EPS and revenue estimates; institutional investors and hedge funds own 58.81% of the stock.

GAP (NYSE:GAP - Get Free Report) had its price objective reduced by research analysts at TD Cowen from $26.00 to $23.00 in a note issued to investors on Tuesday,Benzinga reports. The brokerage presently has a "buy" rating on the stock. TD Cowen's price objective would suggest a potential upside of 13.62% from the company's previous close.

Several other analysts also recently commented on the stock. Morgan Stanley restated an "equal weight" rating and set a $21.00 target price on shares of GAP in a report on Monday, July 6th. Jefferies Financial Group cut shares of GAP from a "buy" rating to a "hold" rating and reduced their price target for the company from $29.00 to $23.00 in a report on Wednesday, August 12th. Evercore set a $20.00 price objective on shares of GAP and gave the stock an "in-line" rating in a research report on Friday, May 29th. Weiss Ratings lowered shares of GAP from a "hold (c+)" rating to a "hold (c)" rating in a report on Tuesday, July 28th. Finally, Bank of America cut their price objective on shares of GAP from $29.00 to $26.00 and set a "neutral" rating on the stock in a research report on Friday, May 29th. Two investment analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating and eleven have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $26.50.

GAP Trading Up 0.3%

GAP stock traded up $0.06 during midday trading on Tuesday, hitting $20.24. 979,172 shares of the company's stock were exchanged, compared to its average volume of 7,679,602. GAP has a one year low of $18.11 and a one year high of $29.36. 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 $7.29 billion, a PE ratio of 7.95, a price-to-earnings-growth ratio of 1.21 and a beta of 2.05. The stock's fifty day moving average price is $20.22 and its 200-day moving average price is $23.32.

GAP (NYSE:GAP - Get Free Report) last announced its quarterly earnings results on Thursday, May 28th. The company reported $0.38 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.39 by ($0.01). GAP had a return on equity of 21.13% and a net margin of 6.25%.The business had revenue of $3.50 billion during the quarter, compared to the consensus estimate of $3.52 billion. During the same quarter last year, the company earned $0.51 earnings per share. The firm's revenue was up 1.0% compared to the same quarter last year. GAP has set its FY 2026 guidance at 2.300-2.400 EPS. Research analysts predict that GAP will post 2.34 earnings per share for the current fiscal year.

Hedge Funds Weigh In On GAP

A number of large investors have recently modified their holdings of the business. BlackRock Inc. bought a new position in shares of GAP in the 2nd quarter valued at about $428,824,000. Bank of America Corp DE bought a new stake in GAP during the second quarter worth about $30,345,000. Ameriprise Financial Inc. boosted its position in GAP by 42.7% during the second quarter. Ameriprise Financial Inc. now owns 4,407,809 shares of the company's stock valued at $96,134,000 after purchasing an additional 1,318,322 shares during the last quarter. Miller Howard Investments Inc. NY boosted its position in GAP by 112.2% during the first quarter. Miller Howard Investments Inc. NY now owns 1,704,021 shares of the company's stock valued at $41,237,000 after purchasing an additional 900,855 shares during the last quarter. Finally, Connor Clark & Lunn Investment Management Ltd. bought a new position in GAP in the second quarter valued at approximately $12,794,000. 58.81% of the stock is currently owned by institutional investors and hedge funds.

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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