UPDATE: Goldman Sachs Raises PT to 15 on Gap

In a published report, Goldman Sachs reiterates its Sell rating on Gap Inc. (NYSE: GPS) and raises its 6-month price target from $14 to $15 per share on continuing low SG&A and upside EPS due to share count.

According to Goldman Sachs, “3Q11 EPS of $0.38 was down 21% vs. LY but beat GS/Consensus $0.37/0.36 as lower share count and SG&A offset weaker gross margins (-450bps vs. our est. -380bps). As previously reported, sales were -2% with comps -5%. Inventory/store was +6% and is expected to be up mid/high single digits at yr end. Mgmt reaffirmed FY11 guidance of $1.40-1.50 (Consensus $1.50).”

GPS closed at $19.25 per share, down 1.18 percent, on Thursday.