Gap Upgraded By Susquehanna And Jefferies

Gap Inc GPS was upgraded Monday by Susquehanna from Neutral to Positive and by Jefferies from Hold to Buy.

Jefferies analyst Randal J. Konik also raised the firm’s price target from $40 to $50 on the stock.

Konik noted that “after a tough year, we remain constructive on retail stocks into 2015 as the macro environment transitions from a headwind to a tailwind for consumer demand, new managements in many instances catalyze product and brand improvement, margins benefit from lean inventories and cotton cost tailwinds and lower cap ex requirements accelerate FCF generation.”

Jefferies raised next year’s estimated earnings from $3.20 to $3.25 per share.

Gap Inc traded at $42.42 in the pre-market, up 0.76 percent.