Jefferies Reiterates Buy on Gap, Inc. (GPS) Following Sales Report
Jefferies reiterated a Buy rating and $36.00 price target on Gap, Inc. (NYSE: GPS) following the company's January sales report. While results were below consensus, January's +2% implies a solid +5% comp for the year, which is impressive particularly against a challenging retail backdrop.
Analyst Randal Konik commented, "GPS reported comparable sales of +1%, slightly below expectations for 2.1%, but shares edged higher after yesterday's close given increased EPS guidance. The Gap brand has now reported two consecutive months of positive comparable sales, and we see an inflection forming. In addition, Old Navy remained positive, with comparable sales up 2%. Banana Republic continues to struggle though and we think management needs to take action."
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Shares of Gap, Inc. closed at $22.98 yesterday.