Gap (GPS) PT Lifted to $23 at UBS, Remains 'Sell' Rated
- Record-setting rally pushes on as S&P ends week up 3 percent
- Trump's Cohn Pick Most Bullish Sign Yet for Banks - Cowen
- Unusual 11 Mid-Day Movers: (IDXG) (INVN) (EBS) Higher; (SCON) (DTEA) (DLTH) Lower (more...)
- 21st Century Fox (FOXA) offers to acquire Sky for GBP10.75/share
- Coca Cola (KO) Announces James Quincey to Succeed Muhtar Kent as CEO; Kent to Continue as Chairman
Find out which companies are about to raise their dividend well before the news hits the Street with StreetInsider.com's Dividend Insider Elite. Sign-up for a FREE trial here.
UBS analyst Michael Binetti lifted his price target on Gap, Inc. (NYSE: GPS) to $23.00 (from $16.00) but maintained a Sell rating, saying while EPS was in-line November is off to s slow start.
Binetti "We're trimming our 4QE EPS to $0.43 from $0.45. Like most retailers so far, GPS signaled a slow start to Nov SSS. GPS noted that traffic has decelerated from 3Q - making it tough to assume positive SSS in 4Q, even against an easy -7% comparison (we forecast 4Q SSS -1.4%). That said, it's early in Nov, and election distractions and a lack of early cold weather have likely been headwinds that could easily dissipate for the group (and the majority of holiday sales are still to come)."
He added, "We're raising our 2017E EPS to $2.00 from $1.88 to reflect better flow-through of GMs in 1H17 (now forecasting 36.7% GM for '17 vs 35.5% previously). That said, GPS acknowledged that after several years of tight expense management, the company would need SSS to turn positive to leverage SG&A from here."
Shares of Gap, Inc. closed at $30.71 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- UBS Cuts Price Target on Restoration Hardware (RH) to $34 Following 3Q
- Broadcom (AVGO) PT Raised to $215 at Oppenheimer
- BMO Capital Cuts Price Target on Nielsen Holdings (NLSN) to $45
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change
Sign 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!