UPDATE: Piper Jaffray Upgrades Gap; Raises PT

According to a research report published this morning, Piper Jaffray has upgraded The Gap GPS from Neutral to Overweight, and has increased PT from $27 to $34. In the report, Piper Jaffray said, “On the heels of 23rd Semi-Annual Taking Stock With Teens Survey, we are upgrading shares of GPS from Neutral to Overweight as we believe Gap Inc. will disproportionately benefit from an emerging multi-year apparel cycle. Our Spring 2012 survey reflects a significant improvement in fashion spending and spending expectations across all income levels and genders. Spending on fashion was up double-digits for both upper- and average-income teens, the first time since 2003-2004. GPS-specific potential catalysts include: 1) improved recent product flows given centralization of Global Creative Office; 2) refined focus on marketing; 3) gross margin recovery fueled by abating product costs; and 4) a strong balance sheet.” The Gap closed yesterday at $26.44.