UPDATE: J.P. Morgan Reiterates Neutral Rating, Raises PT on The Gap on Positive Comps

In a report published Wednesday, J.P. Morgan analyst Brian J. Tunick reiterated his Neutral rating on The Gap

, and raised his price target from $33.00 to $37.00. In the report, Tunick noted, “GPS appears optimistic that the turn in the Gap division is more than just ‘color and weather,' and it has the right people and processes in place now for building increased customer loyalty to the brand. At the Gap division, the high level view is that flowing inventory faster into the store and increased marketing investments can bring the post college grad or new moms back into the store. This ‘lost generation' of Gap shoppers are leaving ANF, AEO, Forever 21, H&M and Gap needs to be more ‘relevant' and ‘part of the conversation.' On a full-year basis, Old Navy is even bigger—worth 39% of the company's top line compared to the Gap brand at 27% and Banana Republic at 18%. The company has taken 2.5 million feet out of the Old Navy division in the past few years in order to help make the business more productive and profitable.” The Gap closed on Tuesday at $36.53.