BMO Capital Markets Upgrades GAP (NYSE:GAP) to “Hold”

GAP (NYSE:GAP) was upgraded by stock analysts at BMO Capital Markets to a “hold” rating in a research note issued to investors on Tuesday, Zacks reports.

Several other analysts have also commented on GAP. Barclays increased their price objective on GAP from $20.00 to $23.00 and gave the company an “equal weight” rating in a report on Friday, August 28th. Weiss Ratings downgraded GAP from a “hold (c+)” rating to a “hold (c)” rating in a research note on Tuesday, July 28th. The Goldman Sachs Group upped their target price on GAP from $25.00 to $27.00 and gave the company a “buy” rating in a research report on Monday, August 31st. Wells Fargo & Company increased their price target on GAP from $22.00 to $23.00 and gave the company a “cautious” rating in a research note on Friday, August 28th. Finally, Bank of America raised their price target on GAP from $26.00 to $27.00 and gave the stock a “neutral” rating in a report on Friday, August 28th. Two research analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating, eleven have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, GAP currently has an average rating of “Hold” and a consensus target price of $27.07.

GAP Trading Down 2.0%

NYSE GAP opened at $20.93 on Tuesday. GAP has a 52 week low of $18.11 and a 52 week high of $29.36. The company has a 50 day moving average price of $20.47 and a 200 day moving average price of $22.47. The company has a quick ratio of 1.11, a current ratio of 1.82 and a debt-to-equity ratio of 0.38. The firm has a market cap of $7.35 billion, a PE ratio of 6.25, a price-to-earnings-growth ratio of 0.91 and a beta of 2.08.

GAP (NYSE:GAP) last announced its earnings results on Thursday, August 27th. The company reported $0.52 earnings per share for the quarter, beating the consensus estimate of $0.48 by $0.04. GAP had a net margin of 8.14% and a return on equity of 19.72%. The company had revenue of $3.65 billion during the quarter, compared to the consensus estimate of $3.69 billion. During the same period last year, the firm earned $0.57 earnings per share. GAP’s revenue was down 2.0% compared to the same quarter last year. GAP has set its FY 2026 guidance at 2.350-2.450 EPS. As a group, sell-side analysts forecast that GAP will post 2.41 EPS for the current fiscal year.

Institutional Investors Weigh In On GAP

A number of large investors have recently made changes to their positions in GAP. Jupiter Topco LLC purchased a new stake in GAP in the second quarter valued at approximately $2,017,000. BlackRock Inc. acquired a new position in GAP in the 2nd quarter worth approximately $428,824,000. Miller Howard Investments Inc. NY raised its position in GAP by 112.2% during the 1st quarter. Miller Howard Investments Inc. NY now owns 1,704,021 shares of the company’s stock worth $41,237,000 after buying an additional 900,855 shares during the last quarter. LSV Asset Management raised its position in GAP by 3.6% during the 4th quarter. LSV Asset Management now owns 3,462,702 shares of the company’s stock worth $88,645,000 after buying an additional 121,001 shares during the last quarter. Finally, Robinhood Asset Management LLC acquired a new stake in GAP during the 2nd quarter valued at approximately $6,312,000. 58.81% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about GAP

Here are the key news stories impacting GAP this week:

• Positive Sentiment: BMO Capital Markets upgraded GAP to “hold,” a less bearish stance that may reduce selling pressure and indicates the firm no longer expects meaningful underperformance. Zacks analyst action
• Positive Sentiment: Zacks Research raised its FY2027 EPS forecast to $2.41 from $2.31 and its FY2028 forecast to $2.62 from $2.55. It also increased Q4 2027 EPS to $0.73 from $0.63, Q3 2028 EPS to $0.87 from $0.83, and Q4 2028 EPS to $0.66 from $0.62. These revisions suggest improved longer-term earnings expectations.
• Positive Sentiment: GAP has hired a Paramount executive to help expand its brands beyond traditional apparel, signaling a strategy to create new growth channels and broaden its consumer reach. Gap taps a new executive to find its next act beyond fashion
• Neutral Sentiment: The current full-year EPS consensus remains $2.41, in line with the company’s FY2026 guidance range midpoint and unchanged by the latest estimate activity. This provides a stable baseline but no new near-term catalyst.
• Negative Sentiment: Zacks reduced estimates for Q1 2029 EPS to $0.53 from $0.56, Q2 2029 EPS to $0.68 from $0.71, Q2 2028 EPS to $0.61 from $0.62, and FY2029 EPS to $2.81 from $2.82. The cuts indicate some longer-term uncertainty despite the upgrades elsewhere.
• Negative Sentiment: Broader specialty-retail sentiment remains cautious: Victoria’s Secret raised guidance after beating earnings estimates, but its shares weakened as comparable-sales growth slowed and valuation concerns persisted. That backdrop may weigh on apparel-retail stocks, including GAP. Victoria’s Secret’s Comeback Is Real—The Stock’s Problem Is Different

About GAP

Gap Inc is an American specialty apparel retailer founded in 1969 by Donald and Doris Fisher in San Francisco, California. The company operates a portfolio of consumer brands focused on clothing, accessories and personal-care products for women, men and children.

Its principal brands include Old Navy, Gap, Banana Republic and Athleta. Products are sold through company-operated stores, franchise locations and digital channels, with offerings spanning casual apparel, denim, activewear, accessories and lifestyle products.

Gap Inc serves customers in North America and selected international markets through its retail and e-commerce operations.