Gap price target raised to $29 from $26 at Jefferies

Jefferies analyst Corey Tarlowe raised the firm’s price target on Gap (GAP) to $29 from $26 and keeps a Hold rating on the shares. The firm’s updated pricing and promotional data shows that in Q1 through April 29, discounts across Abercrombie & Fitch (ANF), Anthropologie, Old Navy, Gap, and Urban Outfitters (URBN) were up 1.3% year-over-year, while average selling prices were down 0.9% year-over-year in Q1 to that date. The data are suggesting a more promotional environment, says the analyst, who still sees opportunity in pressured retail names, but is lowering a handful of estimates and price targets among the group.