Jefferies Has Buy On The Gap

Jefferies & Co. is out with a research report on The Gap, Inc. GPS and it has a Buy rating and a $25 price target on shares. In a note to clients, Jefferies & Co. writes, "We had GPS on the road this week, and based on our conversations and management's tone we believe progress at the company is under way. Merchandise at Gap brand should begin to show improvement starting Spring '12, along with a moderation in sourcing costs. Meanwhile the balance sheet remains stellar with meaningful share purchases anticipated in the near term, providing downside support. Reiterate Buy." Shares of GPS lost 36 cents yesterday to close at $16.02.