Gap upgraded to Overweight from Equal Weight at Morgan Stanley

Morgan Stanley analyst Alex Straton upgraded Gap to Overweight from Equal Weight with a price target of $29, up from $27. The analyst cites positive indicators from the firm’s retail scorecard analysis, incremental confidence in new management’s strategy execution following the Q1 print and June meetings, room for positive earnings revisions in 2024 and beyond, and potential for a “temporary valuation re-rating” for the upgrade. The firm says Gap ranks the second best in its retail scorecard analysis.