UPDATE: Wedbush Raises PT on The Gap on Solid February Comp
In a report published Friday, Wedbush reiterated its Neutral rating on The Gap (NYSE: GPS), and raised its price target from $33.00 to $36.00.
Wedbush noted, “We believe the stock will react positively to a BTE Feb comp of +3%, which reflects ~3 point acceleration on a 2-year stack basis. In particular, we note 5 point sequential acceleration at ON (~40% of F12 sales) despite macro weakness which may have negatively affected the value consumer. Although there was a modest (4) point deceleration at BR, the company believes the weakness can be attributed to fashion that was too Spring forward. Similar to others, management alluded to Easter potentially aiding April rather than March.”
The Gap closed on Thursday at $35.87.
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