Gap Stock Named Top Pick on Profitability Prospects

Group 1 - Morgan Stanley upgraded Gap Inc (NYSE GPS) to "overweight" from "equal weight" and raised its price target to $29 from $27, citing strong topline growth and profitability prospects [1] - Gap Inc's stock was observed to increase by 2.6%, trading at $23.67 following the upgrade [1] - Analysts are divided on Gap Inc, with eight recommending a "hold" or worse, while eight suggest a "strong buy," indicating potential for further upgrades [1] Group 2 - There is a significant short interest in Gap Inc, with 15.8% of its available float sold short, which could provide additional tailwinds [1] - The stock has faced challenges below the $25 level since a peak of $30.74 on June 3, but has gained over 148% in the past 12 months [1] - The 50-day call/put volume ratio for Gap Inc is 3.87, indicating a higher-than-usual popularity of call options [2] Group 3 - The stock's Schaeffer's Volatility Index (SVI) is at 51%, ranking higher than 84% of readings from the past year, suggesting that premiums are affordable amid low volatility expectations [2]