Piper Jaffray Raises Price Target on Gap, Inc. (GPS) to $23 Following July Sales Release

Piper Jaffray maintained an Underweight rating on Gap, Inc. (NYSE: GPS), and raised the price target to $23.00 (from $21.00), following the company's July sales release. Management expects 2Q adjusted EPS of $0.58-$0.59.

Analyst Neely Tamminga commented, "We are updating our model to reflect the company's July sales release in which comps of -4% came in below consensus of -1%. Looking ahead, management expects FQ2 adjusted EPS of $0.58-$0.59. We commend the leadership team for maintaining a mantra of operating discipline--chief among them a commitment to tighter inventory levels. That said, given the underperformance in 2015 and into early 2016, we prefer to wait-and-see for improving trends in both sell-throughs and promotional activity before reconsidering our Underweight rating."

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 $25.62 yesterday.

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