UPDATE: Jefferies Downgrades The Gap as Stock is Cooling Off After a Great Run
In a report published Friday, Jefferies analyst Randal J. Konik downgraded the rating on The Gap (NYSE: GPS) from Buy to Hold, and lowered the price target from $51.00 to $40.00.
In the report, Jefferies noted, “GPS has been one of our favorite names since mid-2011, as structural changes made over the last 2 years resulted in better merchandise, sales momentum and margin gains. However, with comps now slowing and visibility on consumer patterns low as Gap gets more promotionally competitive for Holiday, we are concerned with the company's ability to drive SSS growth and margin expansion against difficult compares. Lowering to Hold; PT to $40.”
The Gap closed on Thursday at $40.24.
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