In a report released today, Corey Tarlowe from Jefferies upgraded Gap Inc to a Buy, with a price target of $30.00.
Meet Your ETF AI Analyst
- Discover how TipRanks' ETF AI Analyst can help you make smarter investment decisions
- Explore ETFs TipRanks' users love and see what insights the ETF AI Analyst reveals about the ones you follow.
Corey Tarlowe has given his Buy rating due to a combination of factors that suggest Gap Inc. is poised for growth. The company has experienced a notable turnaround under new leadership, particularly with its Gap and Old Navy brands, which are showing strong momentum. Additionally, the Athleta brand is recovering, and there is significant potential in the beauty segment, which is currently underestimated by the market.
Corey Tarlowe also highlights the company’s ability to drive sales and earnings growth beyond current market expectations. He anticipates higher revenue and earnings per share by 2027, supported by favorable trends in tariffs, freight, and cotton costs. Furthermore, Gap’s marketing campaigns, such as “Better in Denim” and “Give Your Gift,” have achieved high engagement, contributing to sustained sales growth. With reduced reliance on promotions and a focus on products that resonate with customers, Gap Inc. is well-positioned to improve its margins and achieve its financial targets.
In another report released yesterday, TR | OpenAI – 4o also upgraded the stock to a Buy with a $28.00 price target.
Based on the recent corporate insider activity of 65 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of GAP in relation to earlier this year.