Wedbush Maintains Rating, PT On GPS

Wedbush is maintaining its Neutral rating and its $20 price target on The Gap GPS in anticipation of a difficult month of April. Says Wedbush, in its report, “Following struggling March sales, we expect April to represent another difficult month for GPS. While the shift of Easter into April should have aided sales, we believe the conversion trends were lackluster, particularly at Gap and Old Navy as the brands continue to struggle with product designs and resorted to promotions to clear inventories… Given the expected topline weakness, we recommend investors lighten their respective positions approaching April sales results on May 5th.” GPS closed Friday at $23.24.