UBS Group Has Lowered Expectations for GAP (NYSE:GAP) Stock Price

Key Points

• UBS Group has reduced its target price for GAP stock from $27.00 to $23.00, maintaining a "neutral" rating, which suggests a potential upside of 8.62% from the stock's previous close.
• Multiple analysts have provided contrasting ratings, with Telsey Advisory Group maintaining a "market perform" at $26.00, while JPMorgan raised its price target from $25.00 to $29.00 with an "overweight" rating.
• GAP reported earnings of $0.51 per share for the last quarter, surpassing expectations, and showed a 2.2% revenue increase year-over-year to $3.46 billion.

GAP (NYSE:GAP - Get Free Report) had its target price lowered by stock analysts at UBS Group from $27.00 to $23.00 in a research note issued to investors on Friday,Benzinga reports. The brokerage currently has a "neutral" rating on the stock. UBS Group's price target points to a potential upside of 8.62% from the stock's previous close.

GAP has been the topic of several other reports. Telsey Advisory Group reissued a "market perform" rating and issued a $26.00 target price on shares of GAP in a research note on Friday, May 30th. JPMorgan Chase & Co. increased their price target on shares of GAP from $25.00 to $29.00 and gave the company an "overweight" rating in a report on Monday, May 19th. Wall Street Zen lowered GAP from a "buy" rating to a "hold" rating in a research report on Sunday, August 3rd. Wells Fargo & Company downgraded GAP from an "overweight" rating to an "equal weight" rating and dropped their price target for the stock from $30.00 to $24.00 in a research note on Wednesday, April 30th. Finally, Jefferies Financial Group restated a "hold" rating and issued a $29.00 price objective (up from $26.00) on shares of GAP in a research note on Wednesday, May 21st. Six research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company's stock. Based on data from MarketBeat, GAP currently has a consensus rating of "Hold" and a consensus price target of $25.73.

GAP Trading Down 0.1%

Shares of GAP opened at $21.1750 on Friday. The company has a debt-to-equity ratio of 0.45, a current ratio of 1.71 and a quick ratio of 0.98. GAP has a 1-year low of $16.99 and a 1-year high of $29.29. The company has a market capitalization of $7.97 billion, a P/E ratio of 9.16, a P/E/G ratio of 2.28 and a beta of 2.15. The firm's 50 day simple moving average is $21.00 and its 200 day simple moving average is $21.76.

GAP (NYSE:GAP - Get Free Report) last posted its quarterly earnings data on Thursday, May 29th. The company reported $0.51 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.44 by $0.07. GAP had a return on equity of 27.86% and a net margin of 5.80%.The firm had revenue of $3.46 billion during the quarter, compared to analysts' expectations of $3.41 billion. During the same period in the prior year, the business earned $0.41 EPS. The company's revenue for the quarter was up 2.2% compared to the same quarter last year. GAP has set its FY 2025 guidance at EPS. Q2 2025 guidance at EPS. Sell-side analysts forecast that GAP will post 2.02 earnings per share for the current fiscal year.

Institutional Investors Weigh In On GAP

Large investors have recently added to or reduced their stakes in the stock. State of Tennessee Department of Treasury raised its holdings in shares of GAP by 10.5% in the 2nd quarter. State of Tennessee Department of Treasury now owns 99,990 shares of the company's stock valued at $2,181,000 after purchasing an additional 9,542 shares in the last quarter. Captrust Financial Advisors boosted its position in GAP by 85.2% during the 2nd quarter. Captrust Financial Advisors now owns 37,119 shares of the company's stock valued at $810,000 after acquiring an additional 17,079 shares in the last quarter. Lazard Asset Management LLC raised its position in shares of GAP by 146.4% in the 2nd quarter. Lazard Asset Management LLC now owns 123,726 shares of the company's stock worth $2,697,000 after acquiring an additional 73,516 shares in the last quarter. Ameriprise Financial Inc. grew its stake in GAP by 42.7% in 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. Finally, California State Teachers Retirement System boosted its position in shares of GAP by 0.8% in the 2nd quarter. California State Teachers Retirement System now owns 226,506 shares of the company's stock worth $4,940,000 after purchasing an additional 1,703 shares in the last quarter. 58.81% of the stock is owned by hedge funds and other institutional investors.

GAP Company Profile

Gap, Inc operates as a global apparel retail company, which offers clothing, apparel, accessories, and personal care products for men, women, and children. The firm operates through the following segments: Gap Global, Old Navy Global, Banana Republic Global, Athleta, and Other. The Gap Global segment includes apparel and accessories for men and women under the Gap brand, along with the GapKids, BabyGap, GapMaternity, GapBody, and GapFit collections.

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