UPDATE: Citigroup Reiterates Neutral, Lowers PT to $21 on Gap

Citigroup maintains its Neutral rating on Gap Inc GAP and lowers its price target to $21 from $22 as it thinks initiatives lack aggressiveness. Citigroup comments, "Growth initiatives are still too small to have a meaningful impact on sales while inventory growth and rising cotton prices gives us reason to believe the company will experience gross margin pressure through 1H12. However, we think modest cost reductions and over $1 billion in share repurchases puts a floor on the stock here." GAP closed at $18.51 per share on Wednesday.