Janney Capital Remains Neutral on Gap, Inc. (GPS) as Product Issues Continue

Janney Capital maintains a Neutral rating and $40.00 price target on Gap, Inc. (NYSE: GPS) as Gap and BR continue to weigh on business. The Gap brand reported a -6% comp in May. This marks the 13th consecutive month of negative comps at the division.

Analyst Adrienne Yih commented, "GPS reported May comp of -1%, vs Retail Metrics cons of -2.5%. By brand, comps were -6% at Gap Global, -5% at BR Global & +6% at ON Global. ON benefited from a shift of Super Cash promotion from June into May; we expect this benefit to reverse in June. Product issues continue at the Gap brand, specifically in the women’s business. We do not expect material improvement until spring ‘16, & expect ON’s ability to compensate for Gap’s weakness to diminish in FY15. We remain Neutral on GPS until we see signs of product improvement at the Gap brand."

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 $38.59 yesterday.

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