Gap price target lowered to $27 from $29 at UBS

UBS lowered the firm’s price target on Gap (GAP) to $27 from $29 and keeps a Neutral rating on the shares. Gap delivered a solid Q1 report, with revenue, gross margin, and EPS approximately in-line with expectations, while the Gap and Old Navy brands continue to gain market share and show strong performance in some product categories, but commentary around tariffs is leading the firm to model larger 2H25 headwinds than previously anticipated, the analyst tells investors in a research note. Uncertainty surrounding U.S. consumer spending in 2H25 and tariffs will likely keep the stock rangebound.