Wedbush Morgan Upgrades The Gap (GPS) to Outperform; Channel Checks Indicate Strengthening Sales
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Wedbush Morgan upgrades The Gap (NYSE: GPS) from Neutral to Outperform. Price target increased from $18 to $23.
Wedbush analyst says, "We are upgrading shares of GPS to Outperform as our checks suggest strengthening sales at Gap (driven by the premium denim launch) and Old Navy (from better fashion and strong BTS business) on easy comparisons could deliver strong August and H2 sales. Moreover, we believe revamped merchandise at all three brands coupled with intensified marketing support could rejuvenate traffic and conversion for the balance of F09, particularly given easy comparisons. As such, and coupled with ongoing product cost benefits and SG&A cuts, we anticipate significant share appreciation as GPS delivers F09 and F10 earnings power above current consensus outlook. We believe all three concepts are at an inflection point in rejuvenating traffic and sales on revamped products, which should contribute meaningfully to overall company results and reinforce investor confidence that the company is at the cusp of restoring lapsed market share."
To see more analyst ratings on GPS Click Here.
The Gap, Inc., through its subsidiaries, operates as a specialty retailing company.
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