Jefferies Reports No Expectations On The Gap

According to Jefferies, the Gap GPS has no expectations. Jefferies said that while business remains tough with added challenges from a weak macro economy, sourcing headwinds, and management changes, it thinks the bad news is already priced into the stock and positive catalysts could benefit starting FY'13. “Lower cotton prices, a new design team for Gap brand, and downside support from share repurchases and a solid balance sheet yield favorable risk/reward. Reiterate Buy and $25 PT.” The Gap closed yesterday at $16.49.