Jefferies Raises Price Target on Gap, Inc. (GPS) to $30; Reiterates Buy
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Jefferies reiterated a Buy rating on Gap, Inc. (NYSE: GPS), and raised the price target to $30.00 (from $26.00), following the company's 2Q earnings report. Management guided FY'17 EPS to $1.87-$1.92 (versus the Street of $1.95). Despite the recent improvement in topline trends, management noted that the outlook embeds the traffic environment remaining choppy, which the company hopes to partially offset with increased marketing investment in 2H.
Analyst Randal Konik commented, "While GPS remains a work in progress, 2Q results point to trends moving in the right direction, including sequential comp improvement and merch margins inflecting up YoY, driving GM upside. Looking ahead, we expect the gradual improvement to continue, further supported by the implementation of cost reductions. We view the shares as attractive here and reiterate Buy."
Shares of Gap, Inc. closed at $25.88 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst PT Change
Related EntitiesJefferies & Co, Earnings, Randal Konik
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