Gap price target lowered to $22 from $32 at Citi

Citi lowered the firm’s price target on Gap (GAP) to $22 from $32 and keeps a Buy rating on the shares. The firm says that under the new tariff plan as currently outlined, specialty apparel companies “will be hard hit.” With most product sourced in Asia, product costs will increase significantly, the analyst tells investors in a research note. Citi does not believe the companies have enough pricing power to offset these higher costs. For those that try to raise prices to offset cost increase, this will likely result in weaker demand, the analyst tells investors in a research note. The firm cut estimates and target prices across the subsector.