UPDATE: Wedbush Reiterates On The Gap On Multiple Challenges Ahead

In a report published Friday, Wedbush analyst Morry Brown reiterated a Neutral rating on

, and raised the price target from $38.00 to $45.00. In the report, Wedbush noted, “Near-term merchandise challenges and the addition of management uncertainty keep us from buying the dip. While we remain NEUTRAL on GPS, we are less constructive on the story following the release of September sales and news of CEO Murphy's impending departure. Since initiating coverage of GPS in June, we have been concerned about fashion execution at Gap and expected merchandise challenges to linger into 2H. However, we were constructive on the company's 2015 outlook, given supply chain efficiencies and Omnichannel benefits. We believe the departure of Mr. Murphy adds uncertainty to this viewpoint. While CEO-to-be Art Peck has significant internal and external experience and we carry a favorable bias towards him, we (along with most of the investing community) view Mr. Murphy as one of the most talented executives in retail. With the CEO change opening the door to questions around the long-term story, and near-term fundamentals remaining pressured by merchandise execution, we see limited reason for a bullish view in the near term.” The Gap Inc. closed on Thursday at $36.67.