GAP (NYSE:GAP) Given New $23.00 Price Target at Morgan Stanley

GAP (NYSE:GAP) had its price objective boosted by analysts at Morgan Stanley from $21.00 to $23.00 in a research report issued to clients and investors on Friday,Benzinga reports. The firm currently has an “equal weight” rating on the stock. Morgan Stanley’s target price indicates a potential downside of 3.89% from the stock’s previous close.

Other analysts also recently issued reports about the stock. BTIG Research increased their price target on shares of GAP from $26.00 to $27.00 and gave the company a “buy” rating in a research report on Friday. Bank of America boosted their price objective on shares of GAP from $26.00 to $27.00 and gave the company a “neutral” rating in a report on Friday. Evercore set a $20.00 target price on shares of GAP and gave the company an “in-line” rating in a research note on Friday, May 29th. Wells Fargo & Company reiterated a “cautious” rating and issued a $23.00 target price on shares of GAP in a report on Friday. Finally, Jefferies Financial Group cut shares of GAP from a “buy” rating to a “hold” rating and reduced their price target for the stock from $29.00 to $23.00 in a research report on Wednesday, August 12th. Two investment analysts have rated the stock with a Strong Buy rating, five have given a Buy rating, ten have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of “Hold” and a consensus price target of $26.93.

GAP Trading Up 15.1%

NYSE:GAP traded up $3.14 during mid-day trading on Friday, hitting $23.93. The company had a trading volume of 12,147,696 shares, compared to its average volume of 7,777,419. GAP has a fifty-two week low of $18.11 and a fifty-two week high of $29.36. The business’s fifty day moving average is $20.01 and its two-hundred day moving average is $22.87. The company has a debt-to-equity ratio of 0.41, a quick ratio of 1.08 and a current ratio of 1.81. The firm has a market cap of $8.61 billion, a P/E ratio of 9.42, a P/E/G ratio of 1.25 and a beta of 2.05.

GAP (NYSE:GAP) last issued its earnings results on Thursday, August 27th. The company reported $0.52 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.48 by $0.04. The firm had revenue of $3.65 billion for the quarter, compared to analysts’ expectations of $3.69 billion. GAP had a return on equity of 21.13% and a net margin of 6.25%.The company’s revenue was down 2.0% compared to the same quarter last year. During the same quarter last year, the business earned $0.57 earnings per share. GAP has set its FY 2026 guidance at 2.350-2.450 EPS. As a group, research analysts expect that GAP will post 2.33 earnings per share for the current year.

Hedge Funds Weigh In On GAP

Several institutional investors and hedge funds have recently modified their holdings of the business. Miller Howard Investments Inc. NY lifted its stake in GAP by 112.2% in the first quarter. Miller Howard Investments Inc. NY now owns 1,704,021 shares of the company’s stock valued at $41,237,000 after buying an additional 900,855 shares in the last quarter. LSV Asset Management boosted its holdings in shares of GAP by 3.6% in the fourth quarter. LSV Asset Management now owns 3,462,702 shares of the company’s stock valued at $88,645,000 after buying an additional 121,001 shares during the period. BlackRock Inc. bought a new stake in shares of GAP during the second quarter worth $428,824,000. Redwood Investment Management LLC bought a new stake in shares of GAP during the second quarter worth $1,185,000. Finally, Robinhood Asset Management LLC acquired a new stake in shares of GAP during the second quarter worth $6,312,000. 58.81% of the stock is currently owned by institutional investors and hedge funds.

GAP News Summary

Here are the key news stories impacting GAP this week:

• Positive Sentiment: Old Navy leadership shake-up: Gap appointed retail veteran Michael Francis, formerly associated with Walmart and Target, as Old Navy’s president and CEO effective November 2. Investors appear optimistic that his experience can address the brand’s weak sales and improve execution. Gap shares jump after Old Navy brings in new CEO to revive brand
• Positive Sentiment: Profit beat and higher EPS outlook: Second-quarter adjusted earnings were $0.52 per share, exceeding the $0.48 consensus estimate. Gap raised its fiscal 2026 EPS guidance to $2.35-$2.45, above the $2.33 analyst consensus, helped by gross-margin expansion and strength at the namesake Gap brand. Gap lifts annual profit forecast on strength of namesake brand
• Positive Sentiment: Analyst support: BTIG raised its price target from $26 to $27 and maintained a Buy rating. Bank of America also lifted its target to $27, although it retained a Neutral rating. The new targets imply substantial upside from the referenced $20.84 price. Analyst price-target updates
• Neutral Sentiment: Banana Republic and the namesake Gap brand reportedly performed better than expected, while the company continues emphasizing reduced discounting and marketing partnerships, including Hailey Bieber, to support brand momentum. Gap’s new playbook: Less discounting, more Hailey Bieber
• Negative Sentiment: Sales remain pressured: Quarterly revenue fell 2% year over year to $3.65 billion, below the $3.69 billion consensus, and comparable sales declined 1%. Old Navy was the primary weakness, prompting the CEO replacement; full-year revenue guidance of approximately $15.6 billion is also slightly below expectations. Gap announces new Old Navy CEO following sluggish quarterly sales

GAP Company Profile

Gap Inc is a global specialty retailer renowned for its portfolio of apparel and accessories brands, including Gap, Banana Republic, Old Navy and Athleta. The company designs, sources and markets clothing across a broad price range and style spectrum, catering to men, women and children. Its offerings extend from everyday wardrobe essentials such as denim, tees and outerwear to performance and lifestyle pieces, reflecting each brand’s distinct identity and price point.

Founded in San Francisco in 1969 by Donald and Doris Fisher, Gap Inc has grown into one of the world’s largest apparel companies.