GAP (NYSE:GAP) Price Target Raised to $23.00

GAP (NYSE:GAP) had its price objective raised by Morgan Stanley from $21.00 to $23.00 in a research note released on Friday morning, MarketBeat.com reports. Morgan Stanley currently has an equal weight rating on the stock.

A number of other equities analysts also recently commented on the company. The Goldman Sachs Group decreased their target price on GAP from $28.00 to $25.00 and set a “buy” rating for the company in a report on Thursday, August 20th. BTIG Research lifted their price target on shares of GAP from $26.00 to $27.00 and gave the company a “buy” rating in a report on Friday. Barclays boosted their price objective on shares of GAP from $20.00 to $23.00 and gave the company an “equal weight” rating in a research report on Friday. JPMorgan Chase & Co. restated a “neutral” rating and issued a $27.00 price objective (down from $35.00) on shares of GAP in a report on Friday, May 29th. Finally, Jefferies Financial Group cut shares of GAP from a “buy” rating to a “hold” rating and dropped their target price for the stock from $29.00 to $23.00 in a research report on Wednesday, August 12th. Two investment analysts have rated the stock with a Strong Buy rating, five have given a Buy rating, ten have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average target price of $27.21.

GAP Price Performance

NYSE GAP opened at $23.48 on Friday. GAP has a 1 year low of $18.11 and a 1 year high of $29.36. The stock has a market capitalization of $8.45 billion, a PE ratio of 7.01, a PEG ratio of 1.36 and a beta of 2.05. The company has a debt-to-equity ratio of 0.38, a current ratio of 1.82 and a quick ratio of 1.11. The business’s 50-day moving average is $20.06 and its 200 day moving average is $22.84.

GAP (NYSE:GAP) last released its quarterly earnings results on Thursday, August 27th. The company reported $0.52 EPS for the quarter, beating analysts’ consensus estimates of $0.48 by $0.04. GAP had a return on equity of 19.72% and a net margin of 8.14%.The business had revenue of $3.65 billion during the quarter, compared to analyst estimates of $3.69 billion. During the same quarter in the prior year, the company posted $0.57 EPS. GAP’s quarterly revenue was down 2.0% compared to the same quarter last year. GAP has set its FY 2026 guidance at 2.350-2.450 EPS. Sell-side analysts forecast that GAP will post 2.38 earnings per share for the current year.

GAP Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, October 28th. Stockholders of record on Wednesday, October 7th will be given a $0.175 dividend. The ex-dividend date of this dividend is Wednesday, October 7th. This represents a $0.70 dividend on an annualized basis and a dividend yield of 3.0%. GAP’s dividend payout ratio is currently 20.90%.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of the business. Public Employees Retirement System of Ohio increased its stake in GAP by 0.6% during the 3rd quarter. Public Employees Retirement System of Ohio now owns 71,867 shares of the company’s stock valued at $1,537,000 after purchasing an additional 447 shares in the last quarter. Cullen Frost Bankers Inc. bought a new position in shares of GAP in the fourth quarter worth approximately $26,000. Plato Investment Management Ltd bought a new position in shares of GAP in the fourth quarter worth approximately $28,000. Global Retirement Partners LLC purchased a new stake in shares of GAP during the second quarter valued at approximately $29,000. Finally, California State Teachers Retirement System increased its position in shares of GAP by 0.8% during the second quarter. California State Teachers Retirement System now owns 226,506 shares of the company’s stock valued at $4,940,000 after acquiring an additional 1,703 shares in the last quarter. 58.81% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting GAP

Here are the key news stories impacting GAP this week:

• Positive Sentiment: Quarterly earnings beat expectations: Adjusted EPS was $0.52, exceeding the $0.48 consensus estimate. Gross margin expanded 20 basis points to 41.4%, helping Gap outperform operating-profit expectations despite weaker sales. Gap names Michael Francis Old Navy CEO as quarterly profit beats estimates
• Positive Sentiment: Profit outlook raised: The company now expects fiscal 2026 EPS of $2.35 to $2.45, above the roughly $2.33 analyst consensus. Management cited continued momentum at the Gap brand, margin discipline and strength at Banana Republic. Gap lifts annual profit forecast on strength of namesake brand
• Positive Sentiment: Old Navy leadership reset: Michael Francis, a retail veteran with experience at Walmart and Target, will become Old Navy’s president and CEO on November 2, replacing Haio Barbeito. Investors appear hopeful that Francis can improve the company’s largest brand. Gap shares jump after Old Navy brings in new CEO to revive brand
• Positive Sentiment: Analyst support increased: TD Cowen and BTIG raised their price targets to $27 and assigned “buy” ratings. Bank of America also raised its target to $27, while Morgan Stanley lifted its target to $23 but retained an “equal weight” rating.
• Neutral Sentiment: Sales remained soft: Second-quarter revenue fell 2% year over year to $3.65 billion, below the $3.69 billion consensus, while comparable sales declined 1%. Full-year revenue guidance of about $15.6 billion is slightly below analyst expectations. Gap Inc. Reports Second Quarter Fiscal 2026 Results
• Negative Sentiment: Brand performance was uneven: Old Navy reported sluggish comparable sales, and Athleta continued to face pressure. The need for a leadership change underscores execution risks even as Gap and Banana Republic show stronger momentum.

About GAP

Gap Inc is a global specialty retailer renowned for its portfolio of apparel and accessories brands, including Gap, Banana Republic, Old Navy and Athleta. The company designs, sources and markets clothing across a broad price range and style spectrum, catering to men, women and children. Its offerings extend from everyday wardrobe essentials such as denim, tees and outerwear to performance and lifestyle pieces, reflecting each brand’s distinct identity and price point.

Founded in San Francisco in 1969 by Donald and Doris Fisher, Gap Inc has grown into one of the world’s largest apparel companies.