Nomura Securities Maintains a 'Neutral' on Gap, Inc. (GPS); February Head-Fake?; Raising PT & Estimates
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Price: $24.55 --0%
Rating Summary:
14 Buy, 23 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 21 | New: 20
Rating Summary:
14 Buy, 23 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 21 | New: 20
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Nomura Securities maintains a 'Neutral' on Gap, Inc. (NYSE: GPS) price target raised from $18 to $20.
Analyst, Paul Lejuez, said, "After comping negative in six of the past seven yrs (in F10 they reported +1%), we cannot call the +4% comp in Feb a trend. Feb is the smallest month of the yr and was helped significantly by one of the craziest weather months in history. Increased promos at Old Navy also drove the comp. Even if we assumed that the +4% comp achieved in Feb continued through all of F12, we would arrive at EPS of ~$2.30-$2.40. With the stock currently trading at 10.5x, the high end of that range, it seems the market may already have high expectations. And we don’t foresee the +4% continuing. We are increasing our 1Q12E from $0.33 to $0.35. Our F12E is now $1.85. We are raising our F13E from $2.00 to $2.05."
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 $25.05 yesterday.
Analyst, Paul Lejuez, said, "After comping negative in six of the past seven yrs (in F10 they reported +1%), we cannot call the +4% comp in Feb a trend. Feb is the smallest month of the yr and was helped significantly by one of the craziest weather months in history. Increased promos at Old Navy also drove the comp. Even if we assumed that the +4% comp achieved in Feb continued through all of F12, we would arrive at EPS of ~$2.30-$2.40. With the stock currently trading at 10.5x, the high end of that range, it seems the market may already have high expectations. And we don’t foresee the +4% continuing. We are increasing our 1Q12E from $0.33 to $0.35. Our F12E is now $1.85. We are raising our F13E from $2.00 to $2.05."
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 $25.05 yesterday.
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