Morgan Stanley Comments on the Gap Inc

Morgan Stanley has published a research report on Gap Inc GPS. In the report, Morgan Stanley wrote, "With 20% higher 2H product costs reflected in guidance and cons. ests., EPS upside is likely with positive SSS. Product is improving but slowly; comp acceleration and GM benefit of lower costs in 2H12 are 2012 stories we are not willing to pay for today, so we remain EW." Morgan Stanley rated Gap an Equal-weight with no price target given. Gap closed Friday at $15.69.