Nomura Securities Maintains a 'Neutral' on Gap, Inc. (GPS); Raising PT and Estimates on Gaining Traction
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Price: $24.55 --0%
Rating Summary:
14 Buy, 23 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 7 | Down: 5 | New: 25
Rating Summary:
14 Buy, 23 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 7 | Down: 5 | New: 25
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Nomura Securities maintains a 'Neutral' on Gap, Inc. (NYSE: GPS) price target raised from $20 to $22.
Analyst, Paul Lejuez, said, "GPS posted strong results for the second consecutive month. While March benefited from very warm weather, the company has seen some real traction in its business and has been able to pull back on promotions at Gap Brand and Banana Republic. We are increasing our F12E from $1.85 to $2.06. We assume a +1-3% comp and op margin of 11.1% (+120bps). We are raising our F13E from $2.05 to $2.34...increasing our TP to $22 to reflect our forecast increases. Trading at 6x our F12E EBITDA, the stock is not cheap (we prefer American Eagle (NYSE: AEO) or Ann Inc (NYSE: ANN) at ~5x), as results in April may not be the encore that the market hoped for following a strong Feb/Mar."
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 $26.45 yesterday.
Analyst, Paul Lejuez, said, "GPS posted strong results for the second consecutive month. While March benefited from very warm weather, the company has seen some real traction in its business and has been able to pull back on promotions at Gap Brand and Banana Republic. We are increasing our F12E from $1.85 to $2.06. We assume a +1-3% comp and op margin of 11.1% (+120bps). We are raising our F13E from $2.05 to $2.34...increasing our TP to $22 to reflect our forecast increases. Trading at 6x our F12E EBITDA, the stock is not cheap (we prefer American Eagle (NYSE: AEO) or Ann Inc (NYSE: ANN) at ~5x), as results in April may not be the encore that the market hoped for following a strong Feb/Mar."
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 $26.45 yesterday.
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