In the last three months, 15 analysts have published ratings on Gap (NYSE:GPS), offering a diverse range of perspectives from bullish to bearish.
The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 3 | 2 | 9 | 1 | 0 |
| Last 30D | 1 | 0 | 0 | 0 | 0 |
| 1M Ago | 0 | 2 | 7 | 1 | 0 |
| 2M Ago | 1 | 0 | 2 | 0 | 0 |
| 3M Ago | 1 | 0 | 0 | 0 | 0 |
Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $26.43, along with a high estimate of $32.00 and a low estimate of $18.50. Surpassing the previous average price target of $21.70, the current average has increased by 21.8%.
Diving into Analyst Ratings: An In-Depth Exploration
An in-depth analysis of recent analyst actions unveils how financial experts perceive Gap. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Jonna Kim | TD Cowen | Raises | Buy | $30.00 | $28.00 |
| Adrienne Yih | Barclays | Raises | Overweight | $31.00 | $28.00 |
| Jonna Kim | TD Cowen | Raises | Hold | $28.00 | $24.00 |
| Matthew Boss | JP Morgan | Raises | Neutral | $27.00 | $20.00 |
| Corey Tarlowe | Jefferies | Raises | Hold | $28.00 | $17.00 |
| Simeon Siegel | BMO Capital | Raises | Market Perform | $23.00 | $18.00 |
| Michael Binetti | Evercore ISI Group | Raises | Outperform | $32.00 | $24.00 |
| Alex Straton | Morgan Stanley | Raises | Equal-Weight | $27.00 | $20.00 |
| Dana Telsey | Telsey Advisory Group | Raises | Market Perform | $29.00 | $22.00 |
| Mark Altschwager | Baird | Raises | Neutral | $28.00 | $23.00 |
| Lorraine Hutchinson | B of A Securities | Raises | Underperform | $18.50 | $15.50 |
| Dana Telsey | Telsey Advisory Group | Maintains | Market Perform | $22.00 | $22.00 |
| Paul Lejuez | Citigroup | Raises | Buy | $28.00 | $21.00 |
| Alex Straton | Morgan Stanley | Raises | Equal-Weight | $20.00 | $19.00 |
| Brooke Roach | Goldman Sachs | Raises | Buy | $25.00 | $24.00 |
Key Insights:
- Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Gap. This information provides a snapshot of how analysts perceive the current state of the company.
- Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Gap compared to the broader market.
- Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Gap's stock. This comparison reveals trends in analysts' expectations over time.
Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Gap's market standing. Stay informed and make well-considered decisions with our Ratings Table.
Stay up to date on Gap analyst ratings.
Discovering Gap: A Closer Look
Gap retails apparel, accessories, and personal-care products under the Gap, Old Navy, Banana Republic, and Athleta brands. Old Navy generates more than half of Gap's sales. The firm also operates e-commerce sites, outlet stores, and specialty stores under various Gap names. Gap operates approximately 2,600 stores in North America, Europe, and Asia and franchises about 1,000 more in Asia, Europe, Latin America, and other regions. Gap was founded in 1969 and is based in San Francisco.
A Deep Dive into Gap's Financials
Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.
Revenue Growth: Gap's remarkable performance in 3 months is evident. As of 30 April, 2024, the company achieved an impressive revenue growth rate of 3.42%. This signifies a substantial increase in the company's top-line earnings. When compared to others in the Consumer Discretionary sector, the company excelled with a growth rate higher than the average among peers.
Net Margin: Gap's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 4.66%, the company showcases strong profitability and effective cost management.
Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 5.96%, the company showcases effective utilization of equity capital.
Return on Assets (ROA): Gap's ROA excels beyond industry benchmarks, reaching 1.44%. This signifies efficient management of assets and strong financial health.
Debt Management: Gap's debt-to-equity ratio surpasses industry norms, standing at 2.03. This suggests the company carries a substantial amount of debt, posing potential financial challenges.
The Basics of Analyst Ratings
Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.
In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.
This article was generated by Benzinga's automated content engine and reviewed by an editor.