Assessing Gap: Insights From 9 Financial Analysts

During the last three months, 9 analysts shared their evaluations of Gap GPS, revealing diverse outlooks from bullish to bearish.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

The 12-month price targets, analyzed by analysts, offer insights with an average target of $16.78, a high estimate of $24.00, and a low estimate of $11.00. This upward trend is evident, with the current average reflecting a 27.7% increase from the previous average price target of $13.14.

Understanding Analyst Ratings: A Comprehensive Breakdown

The analysis of recent analyst actions sheds light on the perception of Gap by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Gap. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Gap compared to the broader market.
• Price Targets: Understanding forecasts, analysts offer estimates for Gap's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

To gain a panoramic view of Gap's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on Gap analyst ratings.

Delving into Gap's Background

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 850 more in Asia, Europe, Latin America, and other regions. Gap was founded in 1969 and is based in San Francisco.

Gap's Financial Performance

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Challenges: Gap's revenue growth over 3 months faced difficulties. As of 31 October, 2023, the company experienced a decline of approximately -6.73%. This indicates a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Consumer Discretionary sector.

Net Margin: Gap's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 5.79% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Gap's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 9.23%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): Gap's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 1.99%, the company showcases efficient use of assets and strong financial health.

Debt Management: Gap's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 2.26.

The Core of Analyst Ratings: What Every Investor Should Know

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

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.