BofA/Merrill Lynch Downgrades Gap, Inc. (GPS) to Underperform

BofA/Merrill Lynch downgraded Gap, Inc. (NYSE: GPS) from Neutral to Underperform with a price target of $42.00 (from $45.00) as the core brand continues to struggle.

Analyst Lorraine Hutchinson said the downgrade comes as they expect the company to miss its full year guidance and current Street estimates. She notes 2nd-half results are dependent on a turnaround at the Gap brand and early signs are not good.

The firm cut FY 2015 EPS form $3.03 to $2.85, FY 2016 EPS from $3.46 to $3.26 and FY 2017 EPS from $3.91 to $3.71.

For an analyst ratings summary and ratings history on Gap, Inc. click here. For more ratings news on Gap, Inc. click here.

Shares of Gap, Inc. closed at $44.65 yesterday.

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