Analyst Brooke Roach from Goldman Sachs maintained a Buy rating on Gap Inc and keeping the price target at $32.00.
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Brooke Roach has given his Buy rating due to a combination of factors, including Gap Inc.’s solid fourth-quarter performance and constructive multi-year outlook. The company delivered earnings essentially in line with expectations despite weather-related store disruptions, while issuing fiscal 2026 guidance that supports sustained profit growth even after incorporating higher tariffs, incremental rent and occupancy costs, and front-loaded SG&A investments.
At the same time, Roach highlights the strength of Gap’s core brands, with consistent positive comparable sales, improving merchandise margins supported by higher average unit retail and lower discounting, and positive store traffic. She also points to management’s strategic focus on growth categories such as beauty and accessories, potential upside from tariff developments beyond what is embedded in guidance, and the board’s new $1 billion share repurchase authorization, which collectively support an attractive risk-reward profile for the stock.
Roach covers the Consumer Cyclical sector, focusing on stocks such as Victoria’s Secret, Tapestry, and Gap Inc. According to TipRanks, Roach has an average return of 4.5% and a 53.47% success rate on recommended stocks.
In another report released today, Barclays also maintained a Buy rating on the stock with a $33.00 price target.