Piper Jaffray Cut PT to $25 on Gap, Inc. (GPS) Following December Sales Results

Piper Jaffray maintained an Underweight rating on Gap, Inc. (NYSE: GPS), and cut the price target to $25.00 (from $26.00), following the company's December sales results. Comparable store sales were down 5%, below Piper Jaffray's FQ4 comparable store sales estimate of -3.4%.

Analyst Neely Tamminga commented, "We are updating our model to reflect the company's December sales results in which comparable store sales were down 5%, below our FQ4 comparable store sales estimate of -3.4%. By division, Gap was -2%; Banana Republic, -9%; Old Navy, -7%. On the call, management indicated Old Navy will have a promotion moved out of January and fully into February; we believe this implies further negative comps ahead for the Old Navy division. We agree with CFO Sabrina Simmons' quote in the release, "we look forward to delivering new Spring collections across our brands," but for now this remains a wait-and-see position given the potential risk to margins--thus our below-guidance and below-consensus EPS estimates. As such, our rating remains Underweight and our price target moves to $25."

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 $26.74 yesterday.

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