UPDATE: Jefferies Downgrades Gap On Concerns Of Ability To Drive SSS Growth And Margin Expansion

In a report published Thursday, Jefferies analyst Randal Konik downgraded

from a Buy rating to a Hold rating and lowered the price target from $51.00 to $40.00. In the report, Jefferies says "GPS has been one of our favorite names since mid-2011, as structural changes made over the last 2 years resulted in better merchandise, sales momentum and margin gains. However, with comps now slowing and visibility on consumer patterns low as Gap gets more promotionally competitive for Holiday, we are concerned with the company's ability to drive SSS growth and margin expansion against difficult compares. Lowering to Hold; PT to $40." Gap closed on Thursday at $40.24.