Mizuho Securities Continues To Recommend The Gap

In a report published Friday, Mizuho Securities analyst Betty Chen reiterated a Buy rating and $48.00 price target on

. In the report, Mizuho Securities noted, “We continue to recommend GPS shares as analysis of Athletha suggests another opportunity to capitalize on the robust growth in activewear. With GPS' CEO enthusiastically citing Athleta as the 4th iconic brand, we took a stab at the numbers to understand the potential contribution from this nascent brand. With a variety of technical and casual products to meet multiple fitness needs, the brand drives regular price sell-throughs and AURs higher than its sister brands. Longer-term, Athleta could reach ~350 stores and contribute ~$0.30+ of EPS to GPS' bottom line and upside to current valuation.” The Gap closed on Thursday at $37.14.