) to Outperform from Market Perform, and a price target of $20-$22. In a note to clients, Wells Fargo writes, "Upgrading GPS to Outperform from Market Perform. At 9x PE and 3.7x EV/EBITDA (trough valuation vs. history), with the stock near a 52-week low and short interest double where it was 2.5 months ago, we believe investors are worried that consensus is too high given merchandise margin began declining from peak levels and comps slowed in FQ2 and are getting tougher. We think estimates are achievable and don't believe EPS will be down next year--we have modeled weak comps and merchandise margin, but occupancy leverage and share repurchases could offset some of that." Shares of Gap closed at $16.90 yesterday.