Gap Earnings: What Top Street Analysts Think

With Gap Inc GPS set to release earnings on Thursday after the market closes, now is a good time to take a look at what Wall Street thinks of the clothing retailer.

Wall Street consensus estimates for The Gap are currently earnings per share (EPS) of $0.56 on $3.70 billion in revenue. However, not all analysts see eye-to-eye on the company.

Here’s a look at what six firms have had to say about The Gap in recent weeks.

Sterne Agee CRT

Sterne Agee believes that The Gap will continue to attempt to boost its bottom line by reigning in spending, but notes that this strategy is merely a temporary fix and not a long-term solution to the company’s problems. Sterne Agee has a Neutral rating on The Gap and a $38 target for the stock.

Guggenheim

Guggenheim believes that new Gap management is working hard to make the necessary changes to the company’s product assortment to create positive results. However, these changes may not be reflected in the company’s performance until 2016. Guggenheim projects EPS of $0.58 and has a Neutral rating on The Gap.

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KeyBanc

KeyBanc points to continuing deterioration in The Gap’s performance and sees the company continuing to struggle until a turnaround story is in place. KeyBanc projects EPS of $0.55 and has a Sector Weight rating on The Gap.

Topeka Capital Markets

Topeka calls The Gap’s April comps “ugly,” but sees opportunities to improve sales numbers and margins in the next several years. Topeka has a Buy rating on The Gap and a $50 target for the price. Topeka projects EPS of $0.58.

UBS

UBS is concerned that The Gap’s performance will get worse before they get to the potential light at the end of the tunnel in Spring, 2016. Nevertheless, UBS projects EPS of $0.56, and has a Buy rating and a $46 target on The Gap.

J.P. Morgan

J.P. Morgan believes that The Gap is “far from out of the woods” and faces margin concerns throughout the remainder of the year. J.P. Morgan has a Neutral rating on The Gap and a $40 target on the stock.