Needham & Company Reiterates a 'Hold' on Gap, Inc. (GPS); Reaffirms Outlook & Announces New $500M Share Repurchase
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Price: $24.55 --0%
Rating Summary:
14 Buy, 23 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 20
Rating Summary:
14 Buy, 23 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 20
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Needham & Company reiterates a 'Hold' on Gap, Inc. (NYSE: GPS).
Needham analyst says, "At ~12x our FY12 EPS estimate of $1.57, GPS is trading below the sector average of ~13x but in-line with its long term organic growth rate of 10% to 12%, which we think is a fair valuation at this time given significant margin pressures in F2H11 due to higher sourcing costs and lack of pricing power. While we think that product continues to looks better Y/Y, we are concerned that increased promotional activity at both Gap (NYSE: GPS) and BR, (while effective traffic drivers) has trained the customer to wait for sales, eroding pricing power."
"We are increasing our FY11 EPS estimate by a penny to $1.52, up from $1.51 to reflect the penny upside to our $0.37 estimate in F3Q. Our F4Q EPS estimate remains unchanged...Our F1Q, F2Q, F3Q, F4Q, and FY12 EPS estimates of $0.39, $0.34, $0.41, $0.43, and $1.57 respectively, remain unchanged."
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 $19.25 yesterday.
Needham analyst says, "At ~12x our FY12 EPS estimate of $1.57, GPS is trading below the sector average of ~13x but in-line with its long term organic growth rate of 10% to 12%, which we think is a fair valuation at this time given significant margin pressures in F2H11 due to higher sourcing costs and lack of pricing power. While we think that product continues to looks better Y/Y, we are concerned that increased promotional activity at both Gap (NYSE: GPS) and BR, (while effective traffic drivers) has trained the customer to wait for sales, eroding pricing power."
"We are increasing our FY11 EPS estimate by a penny to $1.52, up from $1.51 to reflect the penny upside to our $0.37 estimate in F3Q. Our F4Q EPS estimate remains unchanged...Our F1Q, F2Q, F3Q, F4Q, and FY12 EPS estimates of $0.39, $0.34, $0.41, $0.43, and $1.57 respectively, remain unchanged."
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 $19.25 yesterday.
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