In a note released early Wednesday morning, Canaccord analyst Laura Champine upgraded shares of The Gap GPS from Hold to Buy and raised the price target from $47 to $51.
Champine explained that the upgrade is due primarily to supply-chain initiatives and new online services.
In terms of the supply-chain initiatives, Champine expects the company to be able to reduce costs, shorten lead times, provide a more consistently trendy assortment and drive long-term margin expansion.
Looking to the new online services, Champine believes it will improve traffic and conversion rates online as well as in stores.
Driven by expected long-term margin expansion, Champine is raising her long-term EPS estimates by an average of $0.17 per year.
Following the upgrade, shares of Gap are trading up just under one percent in the pre-market session.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.