Gap(US:GPS) Ge Long Hui·2026-01-09 03:14Core Viewpoint - UBS upgraded Gap's rating from "Neutral" to "Buy" due to improving business momentum and raised the 12-month target price from $26 to $41 [1] Group 1: Revenue Growth and Strategy - Analyst Jay Sole noted that revenue growth for Gap's Athleta brand is improving, and the company's strategy to enhance its beauty and handbag business is beginning to yield results, which will drive sales and profit growth [1] - The company is making the right investments to expand its beauty and handbag segments, with the market underestimating the potential in these areas, which is expected to help improve the group's gross margin [1] Group 2: Management and Brand Confidence - There is confidence in the new management team at Athleta, which is believed to help revitalize the brand [1] - The analyst also expressed increased confidence in the core businesses of Old Navy and Gap, suggesting that despite some investor concerns about weak holiday sales, the actual performance remains resilient [1]