Core Viewpoint - The Gap, Inc. is identified as an undervalued cyclical stock with recent upgrades from analysts, indicating potential for growth in sales and earnings [1][2]. Group 1: Analyst Upgrades - UBS upgraded The Gap, Inc. from Hold to Buy and raised the price target from $26 to $41 [1]. - Barclays reiterated a Buy rating and increased the price target from $30 to $33 [1]. Group 2: Financial Performance Expectations - UBS anticipates a 4.4% revenue growth for The Gap, Inc. in 2026, alongside a 14% growth in earnings [3]. - This projection represents an improvement from the previous year's performance, which saw only 1.9% revenue growth and a decline in earnings [3]. Group 3: Company Overview - The Gap, Inc. is an American specialty apparel company that offers clothing, accessories, and personal care products through brands such as Old Navy, Gap, Banana Republic, and Athleta [3][2]. Group 4: Market Position - Analysts at UBS believe that the company's sales and earnings are approaching an inflection point, which has not yet been fully reflected in the share price [2]. - New initiatives and the stabilizing performance of Athleta are expected to drive revenue and profit growth [2].
Here’s What Wall Street Thinks About The Gap, Inc. (GAP)