Analysts Slash Price Target On Gap - Read Why

Analysts lowered the price target on Gap Inc (NYSE: GPS) following the company's CEO change and dim outlook.
Wells Fargo analyst Ike Boruchow downgraded from Overweight to Equal-Weight and lowered the price target to $10 from $16 (20% upside).
The analyst said he could not recommend a company that is struggling to handle company-specific challenges in addition to growing macro-economic pressures.
The analyst noted Gap's fundamentals are deteriorating far worse than expected.
Related: Gap CEO Sonia Syngal Steps Down; Company Anticipates Dim Q2 Outlook
Morgan Stanley analyst Kimberley Greenberger lowered the price target to $7.5 (10% downside) from $8 and kept an Underweight rating on the shares.
Credit Suisse analyst Michael Binetti lowered the price target to $8 (4% downside) from $10 and kept a Neutral rating on the shares.
Telsey Advisory Group analyst Dana Telsey maintained Gap with a Market Perform and lowered the price target from $13 to $10.
Barclays analyst Betsy Graseck maintained the Underweight rating and reduced the price target from $7 to $6 (28% downside).
BofA analyst Lorraine Hutchinson maintained Gap with an Underperform and lowered the price target from $9.6 to $8.
Price Action: GPS shares are trading lower by 4.79% at $8.34 on the last check Tuesday.
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