Gap, Inc. (GAP) PT Lowered to $30 at Evercore ISI

Evercore ISI analyst Michael Binetti lowered the price target on Gap, Inc. (NYSE: GAP) to $30.00 (from $33.00) while maintaining a Outperform rating.

The analyst comments "GAP significantly exceeded expectations in 4Q, with every banner but Athleta beating topline to drive a strong EPS beat of $0.54 (Street & ISI at $0.38). GAP guided 2025 above the Street and 1Q ~inline with Street EPS expectations despite industry weakness in February. Old Navy topped expectations at +3% SSS growth in 4Q (despite mixed intra-quarter reads), and Gap chain surged to +7% to join the elite growth stories of holiday 2025 (RL N. America, Coach N. America, BURL…). Multiple brands in the portfolio are contributing, 2025 guidance has visible signs of conservatism (minimal ROD expansion despite a flat/slightly positive SSS leverage point, SG&A guided to grow YOY despite $150m of cost saves), net cash is at its highest level since 2011, and the stock now trades (after mkt price) at a 9.6x P/E vs the top of the 2025 EPS range. Reiterate Outperform."

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