UPDATE: Nomura Reiterates Neutral Rating, Raises PT on The Gap on Long-Term Potential

In a report published Friday, Nomura analyst Simeon A. Siegel reiterated a Neutral rating on

, and raised the price target from $40.00 to $44.00. In the report, Nomura noted, “We have been noting GPS's progressively cheaper valuation as of late and believe the better-than-expected comp and EPS raise is just another result that supports the longer-term thesis. We maintain our Neutral rating in the face of ongoing mall traffic pressure, but believe at 13x FY14 estimates, valuation remains attractive and we would look to get constructive on pullbacks as we see relative downside EPS protection aided by impressive expense discipline and ongoing share repurchases.” The Gap closed on Thursday at $44.65.