Morgan Stanley maintains buy rating on The Gap due to growth potential and strategic focus.

From Yahoo Finance: 2025-06-17 11:24:00

The Gap Inc. is identified as one of the 13 most undervalued retail stocks to buy right now. Analyst maintains a Buy rating with a price target of $27.00, citing growth potential, strategic focus, and management’s commitment to business health despite short-term challenges like tariffs.

The Gap Inc. has transparent brand and company-wide strategies focusing on competitive pricing and brand revitalization, enhancing confidence in its direction. The company also has the potential to expand margins to historical levels, with improving profitability trajectories pointing towards higher EBIT margins.

Specialty retailer The Gap, Inc. offers apparel, accessories, and personal care products for women, men, and children under brands like Old Navy, Gap, Banana Republic, and Athleta. While GAP shows investment potential, certain AI stocks may offer greater upside potential and less downside risk.

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Read more: Morgan Stanley Maintains a Buy on The Gap (GAP) With a $27 PT