Piper Jaffray Adjusting Estimates On Gap

According to Piper Jaffray, Gap GPS estimates are adjusted for Japan and Domestic. Piper Jaffray reported that, following its management-led tour of Gap's two new Shanghai flagships, it reiterates its OW rating and believe the company's foray into China is surpassing internal expectations and should be a driver of long term growth. “Within four months of the November openings, three of the four flagships were already in the top 5% of Gap's fleet, all four were in the top 10%, and the retailer was scoring animpressive 55% brand awareness. Gap plans to open 10-15 more stores in the mainland this year, which is ideal timing considering rising Chinese consumption. We see expansion in China further cementing the company's goal of deriving 25% of sales from int'l and online segments by 2013 (from ~20% in 2010). While we slightly lowered our FY12 and FY13 EPS ests, our $25 PT remains unchanged.” Gap closed yesterday at $21.79.