Piper Jaffray Updates Model to Reflect Gap, Inc.'s (GPS) January Sales - PT to $26
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Piper Jaffray reiterated an Underweight rating on Gap, Inc. (NYSE: GPS), and raised the price target of $26.00 (from $25.00), following the release of January's sales results. Comparable store sales were down 8%, below the LSD% decline expected by the Street. Management indicated their FQ4 EPS will be at the high end of the expected range for the year.
Analyst Neely Tamminga commented, "We are updating our model to reflect the company's January sales results in which comparable store sales were down 8%, below the LSD% decline expected by the Street. By division, Gap was -6%; Banana Republic, -17%; Old Navy, -6%. On the call, management indicated Old Navy had a key promotion shift somewhat out of January and fully into February; we believe this implies the potential for acceleration in Old Navy's comp trends. Owing to discipline in expense management, management indicated their FQ4 EPS will be at the high end of the expected range for the year (implying a $0.56 to $0.57 estimate versus our prior $0.45 estimate). GPS remains a wait-and-see position for us given the potential risk to margins into the new year. As such, our rating remains Underweight."
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 $23.99 yesterday.
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