In the latest quarter, 16 analysts provided ratings for Gap GPS, showcasing a mix of bullish and bearish perspectives.
The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 3 | 3 | 9 | 1 | 0 |
| Last 30D | 0 | 1 | 0 | 0 | 0 |
| 1M Ago | 1 | 0 | 0 | 0 | 0 |
| 2M Ago | 0 | 2 | 8 | 1 | 0 |
| 3M Ago | 2 | 0 | 1 | 0 | 0 |
Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $26.59, along with a high estimate of $32.00 and a low estimate of $18.50. This current average reflects an increase of 20.7% from the previous average price target of $22.03.
Investigating Analyst Ratings: An Elaborate Study
The perception of Gap by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Alex Straton | Morgan Stanley | Raises | Overweight | $29.00 | $27.00 |
| Jonna Kim | TD Cowen | Raises | Buy | $30.00 | $28.00 |
| Adrienne Yih | Barclays | Raises | Overweight | $31.00 | $28.00 |
| Jonna Kim | TD Cowen | Raises | Hold | $28.00 | $24.00 |
| Matthew Boss | JP Morgan | Raises | Neutral | $27.00 | $20.00 |
| Corey Tarlowe | Jefferies | Raises | Hold | $28.00 | $17.00 |
| Simeon Siegel | BMO Capital | Raises | Market Perform | $23.00 | $18.00 |
| Michael Binetti | Evercore ISI Group | Raises | Outperform | $32.00 | $24.00 |
| Alex Straton | Morgan Stanley | Raises | Equal-Weight | $27.00 | $20.00 |
| Dana Telsey | Telsey Advisory Group | Raises | Market Perform | $29.00 | $22.00 |
| Mark Altschwager | Baird | Raises | Neutral | $28.00 | $23.00 |
| Lorraine Hutchinson | B of A Securities | Raises | Underperform | $18.50 | $15.50 |
| Dana Telsey | Telsey Advisory Group | Maintains | Market Perform | $22.00 | $22.00 |
| Paul Lejuez | Citigroup | Raises | Buy | $28.00 | $21.00 |
| Alex Straton | Morgan Stanley | Raises | Equal-Weight | $20.00 | $19.00 |
| Brooke Roach | Goldman Sachs | Raises | Buy | $25.00 | $24.00 |
Key Insights:
- Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Gap. This information provides a snapshot of how analysts perceive the current state of the company.
- Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Gap compared to the broader market.
- Price Targets: Understanding forecasts, analysts offer estimates for Gap's future value. Examining the current and prior targets provides insight into analysts' changing expectations.
To gain a panoramic view of Gap's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.
Stay up to date on Gap analyst ratings.
Unveiling the Story Behind Gap
Gap retails apparel, accessories, and personal-care products under the Gap, Old Navy, Banana Republic, and Athleta brands. Old Navy generates more than half of Gap's sales. The firm also operates e-commerce sites, outlet stores, and specialty stores under various Gap names. Gap operates approximately 2,600 stores in North America, Europe, and Asia and franchises about 1,000 more in Asia, Europe, Latin America, and other regions. Gap was founded in 1969 and is based in San Francisco.
Breaking Down Gap's Financial Performance
Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.
Revenue Growth: Gap displayed positive results in 3 months. As of 30 April, 2024, the company achieved a solid revenue growth rate of approximately 3.42%. This indicates a notable increase in the company's top-line earnings. When compared to others in the Consumer Discretionary sector, the company excelled with a growth rate higher than the average among peers.
Net Margin: Gap's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 4.66%, the company showcases strong profitability and effective cost management.
Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 5.96%, the company showcases effective utilization of equity capital.
Return on Assets (ROA): Gap's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.44% ROA, the company effectively utilizes its assets for optimal returns.
Debt Management: Gap's debt-to-equity ratio stands notably higher than the industry average, reaching 2.03. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.
Analyst Ratings: What Are They?
Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.
Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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