From Yahoo Finance: 2025-05-22 18:11:00

Jefferies raised The Gap, Inc. (GAP) price target from $26 to $29 on May 21, maintaining a Hold rating on the stock. Corey Tarlowe of Jefferies is optimistic about GAP’s sales and the promotional environment leading up to the Q1 2025 earnings release on May 29.

GAP projects flat to slightly up net sales in Q1 FY2025 compared to $3.4 billion in Q1 FY2024. Gross margin is expected to slightly expand from 41.2% in Q1 FY2024. Tarlowe noted increased discounts and decreased selling prices in Q1, especially in the Gap and Old Navy brands.

Tarlowe views GAP’s promotional strategy as an opportunity in the retail sector and remains cautious about estimates and price targets in comparison to the company’s competitors. The Gap, Inc. is a specialty apparel retailer in America, offering clothing, personal care products, and accessories for women, men, and children through various channels.

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Read more at Yahoo Finance: Jefferies Raises PT on The Gap (GAP), Keeps Hold Rating