GAP (NYSE:GAP) Price Target Cut to $28.00 by Analysts at The Goldman Sachs Group

Key Points

• Goldman Sachs cut GAP’s price target from $32 to $28, though it kept a buy rating. The new target still implies about 12% upside from the current share price.
• GAP’s latest earnings report came in slightly light, with EPS of $0.38 vs. $0.39 expected and revenue of $3.50 billion versus the $3.52 billion estimate. The company also lowered its full-year sales outlook, citing slower growth at Old Navy and softer consumer demand.
• Analyst sentiment remains mixed overall, with a Moderate Buy consensus and a MarketBeat average price target of $29.21. Several firms recently adjusted their views, including TD Cowen cutting its target to $26 and JPMorgan raising its target to $35.

GAP (NYSE:GAP - Get Free Report) had its target price cut by analysts at The Goldman Sachs Group from $32.00 to $28.00 in a research report issued to clients and investors on Friday,Benzinga reports. The firm presently has a "buy" rating on the stock. The Goldman Sachs Group's price target suggests a potential upside of 12.24% from the company's current price.

A number of other research firms also recently commented on GAP. Zacks Research downgraded shares of GAP from a "strong-buy" rating to a "hold" rating in a research note on Monday, February 2nd. Citigroup increased their price objective on shares of GAP from $25.00 to $27.00 and gave the stock a "neutral" rating in a research note on Friday, March 6th. TD Cowen reduced their price objective on shares of GAP from $32.00 to $26.00 and set a "buy" rating for the company in a research note on Monday, May 18th. JPMorgan Chase & Co. increased their price objective on shares of GAP from $33.00 to $35.00 and gave the stock an "overweight" rating in a research note on Friday, March 20th. Finally, Evercore set a $20.00 price objective on shares of GAP in a research note on Friday. Two equities research analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and four have assigned a Hold rating to the stock. According to data from MarketBeat, GAP presently has a consensus rating of "Moderate Buy" and a consensus price target of $29.21.

GAP Price Performance

GAP stock opened at $24.95 on Friday. The stock has a 50-day moving average price of $24.26 and a two-hundred day moving average price of $25.69. The stock has a market cap of $9.11 billion, a PE ratio of 11.60, a price-to-earnings-growth ratio of 1.39 and a beta of 2.11. The company has a current ratio of 1.75, a quick ratio of 1.08 and a debt-to-equity ratio of 0.39. GAP has a 1 year low of $18.68 and a 1 year high of $29.36.

GAP (NYSE:GAP - Get Free Report) last released its earnings results on Thursday, May 28th. The company reported $0.38 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.39 by ($0.01). GAP had a return on equity of 22.98% and a net margin of 5.31%.The firm had revenue of $3.50 billion for the quarter, compared to the consensus estimate of $3.52 billion. During the same quarter last year, the company posted $0.51 EPS. GAP's revenue for the quarter was up 1.0% on a year-over-year basis. GAP has set its FY 2026 guidance at 2.300-2.400 EPS. Equities analysts forecast that GAP will post 2.29 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, insider Julie Gruber sold 5,302 shares of the firm's stock in a transaction dated Friday, April 17th. The shares were sold at an average price of $27.00, for a total value of $143,154.00. Following the completion of the sale, the insider directly owned 58,414 shares in the company, valued at approximately $1,577,178. This trade represents a 8.32% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Sarah Gilligan sold 69,912 shares of the firm's stock in a transaction dated Monday, March 23rd. The shares were sold at an average price of $25.00, for a total transaction of $1,747,800.00. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 923,098 shares of company stock worth $22,648,158 in the last three months. Insiders own 31.00% of the company's stock.

Institutional Investors Weigh In On GAP

Several hedge funds have recently bought and sold shares of the company. Glenmede Trust Co. NA lifted its stake in GAP by 146.5% in the 1st quarter. Glenmede Trust Co. NA now owns 77,435 shares of the company's stock valued at $1,874,000 after purchasing an additional 46,017 shares during the last quarter. Kentucky Retirement Systems acquired a new stake in GAP during the first quarter worth approximately $529,000. California State Teachers Retirement System lifted its position in GAP by 23.5% during the first quarter. California State Teachers Retirement System now owns 279,201 shares of the company's stock worth $6,757,000 after acquiring an additional 53,098 shares during the last quarter. Miller Howard Investments Inc. NY lifted 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 worth $41,237,000 after acquiring an additional 900,855 shares during the last quarter. Finally, Public Employees Retirement System of Ohio lifted its position in GAP by 2.7% during the fourth quarter. Public Employees Retirement System of Ohio now owns 73,812 shares of the company's stock worth $1,890,000 after acquiring an additional 1,945 shares during the last quarter. 58.81% of the stock is currently owned by institutional investors and hedge funds.

GAP News Summary

Here are the key news stories impacting GAP this week:

• Negative Sentiment: Gap cut its full-year sales forecast, saying slower growth at Old Navy and weaker discretionary spending are hurting demand. The company now expects revenue growth of 1% to 2%, down from 2% to 3%, which raised concerns about consumer softness and near-term sales momentum. Article Title
• Negative Sentiment: The company missed first-quarter revenue expectations and posted EPS of $0.38 versus the $0.39 estimate, reinforcing worries that results are not keeping pace with analyst forecasts. Article Title
• Negative Sentiment: Management said Old Navy’s spring and summer assortment did not resonate with shoppers, a key reason the company lowered its outlook and why the stock dropped sharply in after-hours and premarket trading. Article Title
• Neutral Sentiment: Gap still reported some positives, including 1% revenue growth, 2% comparable-sales growth, and a raised full-year EPS outlook, but those upside points were outweighed by the cautious sales guidance. Article Title

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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