JPMorgan Chase & Co. Cuts GAP (NYSE:GAP) Price Target to $33.00

Key Points

• JPMorgan cut GAP's price target from $36 to $33 but kept an "overweight" rating, implying roughly 41.8% upside from the recent share price.
• GAP shares plunged about 14.4% to $23.28 on heavy volume after mixed Q4 results — EPS $0.45 and $4.24B revenue met estimates — amid concerns over Athleta weakness, winter-related store closures and margin pressures.
• The company raised FY‑2026 guidance to $2.20–$2.35 EPS and authorized a $1 billion share buyback, while analyst consensus remains a "Moderate Buy" with an average target near $30.46.

GAP (NYSE:GAP - Get Free Report) had its price objective reduced by JPMorgan Chase & Co. from $36.00 to $33.00 in a research report issued to clients and investors on Friday,Benzinga reports. The brokerage presently has an "overweight" rating on the stock. JPMorgan Chase & Co.'s target price would suggest a potential upside of 41.75% from the stock's current price.

Several other analysts have also recently commented on the stock. The Goldman Sachs Group upped their target price on shares of GAP from $29.00 to $32.00 and gave the company a "buy" rating in a research report on Friday, January 30th. Guggenheim began coverage on GAP in a report on Tuesday, December 9th. They issued a "neutral" rating for the company. Evercore increased their target price on GAP from $25.00 to $28.00 and gave the company an "outperform" rating in a research note on Friday, November 21st. Zacks Research cut GAP from a "strong-buy" rating to a "hold" rating in a report on Monday, February 2nd. Finally, Bank of America upped their price target on GAP from $23.00 to $27.00 and gave the company a "neutral" rating in a research note on Friday, November 21st. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and four have given a Hold rating to the company's stock. According to MarketBeat, GAP currently has a consensus rating of "Moderate Buy" and an average target price of $30.46.

GAP Trading Down 14.4%

NYSE:GAP traded down $3.92 on Friday, hitting $23.28. 18,903,835 shares of the stock were exchanged, compared to its average volume of 7,632,226. The company has a debt-to-equity ratio of 0.41, a quick ratio of 0.97 and a current ratio of 1.72. GAP has a 52 week low of $16.99 and a 52 week high of $29.36. The stock has a market capitalization of $8.66 billion, a price-to-earnings ratio of 10.39, a P/E/G ratio of 2.85 and a beta of 2.29. The company's 50-day moving average price is $27.33 and its 200 day moving average price is $24.90.

GAP (NYSE:GAP - Get Free Report) last issued its quarterly earnings results on Thursday, March 5th. The company reported $0.45 EPS for the quarter, hitting the consensus estimate of $0.45. The company had revenue of $4.24 billion during the quarter, compared to analysts' expectations of $4.24 billion. GAP had a net margin of 5.57% and a return on equity of 24.91%. GAP's revenue was up 2.1% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.54 EPS. GAP has set its FY 2026 guidance at 2.200-2.350 EPS. On average, equities research analysts forecast that GAP will post 2.02 earnings per share for the current year.

Insider Buying and Selling at GAP

In related news, Director William Sydney Fisher sold 88,860 shares of the business's stock in a transaction on Thursday, December 11th. The shares were sold at an average price of $26.82, for a total value of $2,383,225.20. Following the sale, the director directly owned 2,764,593 shares of the company's stock, valued at approximately $74,146,384.26. The trade was a 3.11% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, insider Julie Gruber sold 30,000 shares of the company's stock in a transaction on Wednesday, December 17th. The stock was sold at an average price of $28.00, for a total transaction of $840,000.00. Following the completion of the transaction, the insider directly owned 37,395 shares of the company's stock, valued at approximately $1,047,060. The trade was a 44.51% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 133,971 shares of company stock valued at $3,629,264. 30.56% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the company. Ameriprise Financial Inc. raised its position in GAP by 4.1% in the 3rd quarter. Ameriprise Financial Inc. now owns 4,588,800 shares of the company's stock valued at $98,154,000 after buying an additional 180,991 shares during the last quarter. Geode Capital Management LLC grew its stake 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 worth $110,750,000 after acquiring an additional 14,141 shares in the last quarter. LSV Asset Management grew 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 acquiring an additional 121,001 shares in the last quarter. Bank of New York Mellon Corp raised its holdings in shares of GAP by 13.0% in the fourth quarter. Bank of New York Mellon Corp now owns 3,195,934 shares of the company's stock valued at $81,816,000 after purchasing an additional 368,191 shares during the last quarter. Finally, Miller Howard Investments Inc. NY bought a new stake in shares of GAP in the fourth quarter worth $20,561,000. 58.81% of the stock is owned by institutional investors and hedge funds.

GAP News Summary

Here are the key news stories impacting GAP this week:

• Positive Sentiment: Company raised FY‑2026 guidance (EPS 2.20–2.35 vs. consensus ~2.15) and higher revenue targets; also announced a $1 billion share repurchase authorization, which supports capital return and upside to EPS. Gap Inc. Reports Fourth Quarter and Fiscal 2025 Results; Provides Fiscal 2026 Outlook
• Positive Sentiment: Core brands (Old Navy, Gap, Banana Republic) produced positive comparable‑sales improvement in Q4, showing the turnaround strategy is working outside of Athleta. Gap Q4 Earnings & Sales Meet Estimates, Revenues Rise Y/Y
• Positive Sentiment: Some brokers and commentators are bullish — Telsey raised its target and Jim Cramer highlighted the turnaround, which could support longer‑term sentiment if execution continues. Earnings Call Transcript / Commentary
• Neutral Sentiment: Citigroup raised its price target to $27 but kept a neutral rating — a modest vote of confidence in valuation but not a clear buy signal. Benzinga
• Neutral Sentiment: Analyst/value writeups (Zacks, others) highlight GAP’s value metrics and improving returns, useful for longer‑term investors but less relevant to near‑term volatility. Here's Why Gap (GAP) is a Strong Value Stock
• Negative Sentiment: Athleta remains a material drag — same‑store sales fell roughly 10% in Q4, weighing on overall margins and investor confidence about the brand’s recovery timeline. Gap Profit Falls as Athleta Weighs on Results Again
• Negative Sentiment: Mixed/soft near‑term results: several outlets flagged an EPS/revenue miss (or “double miss”) versus some analyst prints, prompting a selloff on concerns execution is still uneven. Gap shares fall on earnings miss despite continued sales growth
• Negative Sentiment: Historic winter storms forced ~800 temporary store closures in the quarter, disrupting sales and providing a near‑term headwind investors are citing as part of the profit miss. Historic winter storms weigh on Gap, Old Navy performance
• Negative Sentiment: Company signaled some FY outlook and margin risks (tariffs and cost pressures flagged), and at least one report says annual adjusted profit guidance came in below some estimates — adding to investor caution. Gap Forecasts Annual Adjusted Profit Below Estimates as Tariffs Weigh

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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