Canaccord Genuity Maintains a 'Sell' on Gap, Inc. (GPS); Q2 Beats, But Operating Expenses Still A Hangover
Tweet Send to a FriendGet Alerts GPS Hot Sheet
Price: $41.36 +0.78%
Rating Summary:
15 Buy, 12 Hold, 5 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 21 | Down: 24 | New: 29
Rating Summary:
15 Buy, 12 Hold, 5 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 21 | Down: 24 | New: 29
Trade GPS Now!
Canaccord Genuity maintains a 'Sell' on Gap, Inc. (NYSE: GPS) price target of $28.00 (from $26.00).
Analyst, L aura Champine, said, "GPS reported EPS of $0.49, $0.02 above our estimate and $0.01 ahead of consensus and the high end of prior guidance. The company benefited from a 295bps yr./yr. gross margin improvement, better than our estimate of a 100bps increase. GPS is progressing through what management has labeled an investment year, which resulted in a 95bps increase in the operating expense rate driven primarily by elevated marketing spending. We had forecast 50bps of expense leverage. We continue to believe shares have been overbought with the stock appreciating 85% YTD versus the S&P 500 index +13% and the RLX index +22%. We still have concerns regarding H2 margins, particularly heading into the back-to-school and holiday seasons."
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 $34.34 yesterday, with a 52 week range of $15.08-$34.92.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
Analyst, L aura Champine, said, "GPS reported EPS of $0.49, $0.02 above our estimate and $0.01 ahead of consensus and the high end of prior guidance. The company benefited from a 295bps yr./yr. gross margin improvement, better than our estimate of a 100bps increase. GPS is progressing through what management has labeled an investment year, which resulted in a 95bps increase in the operating expense rate driven primarily by elevated marketing spending. We had forecast 50bps of expense leverage. We continue to believe shares have been overbought with the stock appreciating 85% YTD versus the S&P 500 index +13% and the RLX index +22%. We still have concerns regarding H2 margins, particularly heading into the back-to-school and holiday seasons."
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 $34.34 yesterday, with a 52 week range of $15.08-$34.92.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- Jefferies Lifts Numbers on Diana Shipping (DSX) Post Q1
- Microsoft (MSFT) Rally is Over, Says Barclays
- Wedbush Expects Positive Results from Insmed (INSM) ARIKAC Trial
Create E-mail Alert Related Categories
Analyst Comments, Analyst EPS View, Analyst PT ChangeRelated Entities
Standard & Poor's, Canaccord Genuity
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
