Gap (GPS) Numbers Cut at Piper Jaffray on Stepped-Up Promotional Activity
Get Alerts GPS Hot Sheet
Rating Summary:
11 Buy, 24 Hold, 5 Sell
Rating Trend: Up
Today's Overall Ratings:
Up: 20 | Down: 14 | New: 22
Join SI Premium – FREE
Piper Jaffray analyst Neely Tamminga trimmed estimate and her price target on Neutral-rated Gap, Inc. (NYSE: GPS) to $38.00 (from $40.00) on stepped-up promotional activity.
Tamminga commented, "We are lowering estimates on GPS for the second quarter and through the balance of this fiscal year. Simply stated, promotional activity has been high for core Gap stores in the U.S., but more notable is the step up in promotional activity by Old Navy in the back half of this quarter. While difficult to assess what's planned versus not, we typically observe that a sharp step-up (or step-down) tends to be a reflexive move with sales and margin movements that follow in the opposite direction. We note that management's last guidance update of $2.75-$2.80 for 2015/FY16 compares with our now $2.56 estimate. We remain Neutral on GPS shares in view of core Gap brand (38% of sales) still seemingly struggling the most among the portfolio--especially at a time when consumer interest in denim and knits is beginning to show a positive inflection point."
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 $36.05 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Goldman Sachs Downgrades Epiroc AB (EPIA:SS) (EPOKY) to Neutral
- TKO Group Holdings (TKO) PT Raised to $130 at Citi
- Jefferies Downgrades Scout24 AG (G24:GR) (SCOTF) to Hold
Create E-mail Alert Related Categories
Analyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT ChangeRelated Entities
Piper Jaffray, Neely TammingaSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!