+ 4.25
+ 1.17%
+ 2.33
+ 0.67%
+ 4.31
+ 0.99%

Yeezy Deal A Traffic Driver For The Gap, RBC Says In Upgrade

July 15, 2020 11:42 am
Share to Linkedin Share to Twitter Share to Facebook Share to Print License More
Yeezy Deal A Traffic Driver For The Gap, RBC Says In Upgrade

Gap is a relative outperformer with catalysts ahead, according to RBC Capital Markets. 

The Gap Analyst: Kate Fitzsimmons upgraded The Gap from Sector Perform to Outperform with a price target lifted from $13 to $18. 

The Gap Takeaways: Fitzsimmons named the following as Gap catalysts that the analyst said could unlock value in the stock. 

  • Fall 2020 analyst day.
  • 2021 Yeezy Gap Launch.
  • Productivity stabilization and fixed cost reduction efforts.

After six consecutive years of negative comps for the Gap brand, the analyst said new members of management are trying to find ways to “inject much needed excitement.”

Crossover sales between the Yeezy and Gap brands should drive traffic, and "Gap sees a halo from West's already elevated basics focus," Fitzsimmons said. 

Yeezy Gap could represent $2-$5 per share in the next few years, the analyst said. 

GPS Price Action: Gap shares were trading 8.87% higher at $12.15 at the time of publication Wednesday. 

Photo courtesy of The Gap. 

For the latest in financial news, exclusive stories, memes follow Benzinga on Twitter, Facebook & Instagram. For the best interviews, stock market talk & videos, subscribe to Benzinga Podcasts and our YouTube channel.

Related Articles

Analysts React To Gap's Earnings Miss, 20% Fall: Near-Term Visibility Diminished

Gap Inc (NYSE: GPS) reported third-quarter results that fell short of expectations and investors weren't buying management's optimistic tone. read more

JPMorgan Upgrades Gap, Highlights Old Navy's Recent Success

Shares of Gap Inc (NYSE: GPS) look attractive at current levels after underperforming the S&P 500 index by 50% over the past three years, according to JPMorgan. read more

Why Barclays Is Turning Bullish On 4 Retailers

For the first time in more than 10 years, Barclays analysts turned positive on the retail industry and said a bullish stance on four retailers is now warranted. The Retail Analyst: Adrienne Yih upgraded the following retailers: read more

BofA Upgrades Gap On Athleta Performance, Old Navy Prospects

Sales at Gap Inc’s (NYSE: GPS) Old Navy brand are likely to return to pre-pandemic levels faster than expected, according to BofA Securities. read more