Barclays trims Gap target, says buy on weakness

Barclays analyst Adrienne Yih lowered the firm’s price target on Gap (GAP) to $32 from $33 and keeps an Overweight rating on the shares. The company “convincingly beat” Q1 expectations across the board as Old Navy and Gap continue to deliver positive comps, with both banners continuing to take share, the analyst tells investors in a research note. However, the firm says that after a nearly 50% run since last quarter, Gap shares traded down 15% on high expectations and 10% earnings reduction from a $100M-$150M tariff impact. Barclays is a buyer of the stock on weakness.