Jefferies Raises Price Target on Gap, Inc. (GPS) to $36 Following 3Q Report
Jefferies reiterated a Buy rating on Gap, Inc. (NYSE: GPS), and raised the price target to $36.00 (from $32.00), following the company's 3Q earnings report. Management reiterated its FY'17 EPS guidance of $1.87-$1.92, implying 4Q EPS of $0.35-$0.40 (vs. consensus of $0.50).
Analyst Randal Konik commented, "3Q results point to a bottoming in fundamentals, including significant merch margin improvement and clean inventory. While we acknowledge the headwinds in 4Q, we see guidance as conservative, and expected the gradual improvement to continue, further supported by the implementation of cost reductions. Reiterate Buy, PT to $36."
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Shares of Gap, Inc. closed at $30.71 yesterday.