Bank of America Securities analyst Lorraine Hutchinson has reiterated their neutral stance on GAP stock, giving a Hold rating on November 13.
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Lorraine Hutchinson’s rating is based on a combination of factors that influence Gap Inc’s current market position. The company reported a stronger-than-expected third-quarter performance, with adjusted earnings per share surpassing estimates, driven by improved sales and gross margins. Management’s positive outlook for the holiday season further supports this performance, as they have raised the lower end of their fiscal 2025 sales forecast.
However, despite these encouraging signs, Hutchinson maintains a Hold rating due to ongoing concerns about the impact of tariffs on lower-income customers. While there is notable strength in Gap’s comparable sales across its brands, including Old Navy and Banana Republic, the pressure from tariffs remains a significant factor. Additionally, while there is potential for gross margin benefits in the second half of fiscal 2026, the current environment requires cautious optimism, leading to the decision to keep the rating at Hold.
According to TipRanks, Hutchinson is a 4-star analyst with an average return of 3.4% and a 51.82% success rate. Hutchinson covers the Consumer Cyclical sector, focusing on stocks such as Nike, Ross Stores, and Lululemon Athletica.
In another report released on November 13, Telsey Advisory also maintained a Hold rating on the stock with a $24.00 price target.