Goldman Raises Numbers on Gap (GPS), But Keeps Sell as Cost Tailwinds Won't Last
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Price: $41.78 +0.72%
Rating Summary:
15 Buy, 12 Hold, 5 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 24 | Down: 17 | New: 24
Rating Summary:
15 Buy, 12 Hold, 5 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 24 | Down: 17 | New: 24
Trade GPS Now!
Goldman Sachs bumped estimates and its price target on Gap, Inc. (NYSE: GPS) from $15 to $17 after Q4 results, but is keeping its Sell rating on continued challenges. Gap reported Q4 EPS of $0.44, which beat the firm's view of $0.41 and the consensus of $0.42, largely on SG&A.
The biggest positive in the quarter was an average unit cost benefit, Goldman notes. The firm said this is a sector-wide tailwind and they prefer to play other names like Buy-rated American Eagle Outfitters (NYSE: AEO), where the cost declines are "icing on top," which is not the case with Gap.
Goldman sees the cost declines as only a temporary buffer to secular headwinds that should continue to weigh on Gaps sales and net income.
The firm raised 2012 EPS from $1.53 to $1.56, 2013 from $1.50 to $1.70 and introduce 2014 EPS of $1.77
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 $23.52 yesterday, with a 52 week range of $15.08-$23.73.
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The biggest positive in the quarter was an average unit cost benefit, Goldman notes. The firm said this is a sector-wide tailwind and they prefer to play other names like Buy-rated American Eagle Outfitters (NYSE: AEO), where the cost declines are "icing on top," which is not the case with Gap.
Goldman sees the cost declines as only a temporary buffer to secular headwinds that should continue to weigh on Gaps sales and net income.
The firm raised 2012 EPS from $1.53 to $1.56, 2013 from $1.50 to $1.70 and introduce 2014 EPS of $1.77
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 $23.52 yesterday, with a 52 week range of $15.08-$23.73.
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