Stock Market News

Gap Inc Upgraded at Barclays as Major Risk Factors ‘Now Well Known’

2022.08.30 17:46

Gap Inc Upgraded at Barclays as Major Risk Factors 'Now Well Known'
Gap, Inc. (GPS) Upgraded at Barclays as Major Risk Factors ‘Now Well Known’

By Sam Boughedda

 

Shares of Gap Inc (NYSE:GPS) are up over 5% in early Tuesday trading after it was upgraded to Equal Weight from Underweight at Barclays.

A Barclays analyst also raised the firm’s price target on the stock to $9 from $6. She said in a research note that they believe the major risk factors to the story are “now well known,” and there is “neutral-to-positive headline risk at least through year-end as Gap takes measures to turn the business.”

“We believe that the sales-to-inventory growth spread at the end of 2Q22 (inventory growth 44% faster than sales, which was only slightly worse than 1Q22’s 41%) will be at its maximum negative spread as GPS consciously works down inventory. The company is taking measures to aggressively reduce the inventory by liquidating it through markdowns, packing it away for use next year, and dramatically reducing future receipts,” wrote the analyst.

However, she added that the Gap division has been an “unsuccessful decades-long turn in progress,” and they believe it will continue to struggle as the Gap brand fails to resonate with Millennial and Gen Z demographics, who will be the driving force of consumer behavior and dollar spend over the next couple of decades.

“While we do not see any immediate fix to the several issues plaguing GPS and acknowledge that fundamentals could get worse given weakening demand and cotton input costs on the rise, we do see the company taking significant measures to stabilize and improve the business,” she explained.

 

Source

Related Articles

Leave a Reply

Back to top button
bitcoin
Bitcoin (BTC) $ 82,855.20 1.23%
ethereum
Ethereum (ETH) $ 1,935.69 0.43%
tether
Tether (USDT) $ 1.00 0.01%
xrp
XRP (XRP) $ 2.29 1.89%
bnb
BNB (BNB) $ 627.13 1.11%
solana
Solana (SOL) $ 125.65 1.67%
usd-coin
USDC (USDC) $ 1.00 0.01%
cardano
Cardano (ADA) $ 0.705018 1.71%
dogecoin
Dogecoin (DOGE) $ 0.168503 2.60%
tron
TRON (TRX) $ 0.241098 8.90%
staked-ether
Lido Staked Ether (STETH) $ 1,934.80 0.50%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 82,672.15 1.24%
leo-token
LEO Token (LEO) $ 9.78 0.07%
chainlink
Chainlink (LINK) $ 13.96 0.64%
the-open-network
Toncoin (TON) $ 3.59 4.13%
usds
USDS (USDS) $ 1.00 0.00%
stellar
Stellar (XLM) $ 0.27526 1.25%
wrapped-steth
Wrapped stETH (WSTETH) $ 2,315.63 0.53%
hedera-hashgraph
Hedera (HBAR) $ 0.189784 0.44%
pi-network
Pi Network (PI) $ 1.16 13.00%
avalanche-2
Avalanche (AVAX) $ 19.08 1.05%
shiba-inu
Shiba Inu (SHIB) $ 0.000013 2.56%
sui
Sui (SUI) $ 2.29 3.60%
mantra-dao
MANTRA (OM) $ 7.03 0.27%
litecoin
Litecoin (LTC) $ 90.44 1.74%
polkadot
Polkadot (DOT) $ 4.49 3.04%
bitcoin-cash
Bitcoin Cash (BCH) $ 335.34 0.35%
bitget-token
Bitget Token (BGB) $ 4.61 3.62%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.01%
weth
WETH (WETH) $ 1,935.70 0.35%
binance-bridged-usdt-bnb-smart-chain
Binance Bridged USDT (BNB Smart Chain) (BSC-USD) $ 1.00 0.24%
hyperliquid
Hyperliquid (HYPE) $ 14.27 8.21%
whitebit
WhiteBIT Coin (WBT) $ 28.19 0.94%
wrapped-eeth
Wrapped eETH (WEETH) $ 2,056.96 0.51%
monero
Monero (XMR) $ 209.06 1.28%
uniswap
Uniswap (UNI) $ 6.40 1.44%
susds
sUSDS (SUSDS) $ 1.05 0.07%
aptos
Aptos (APT) $ 5.41 1.61%
okb
OKB (OKB) $ 53.74 5.24%
dai
Dai (DAI) $ 1.00 0.01%
near
NEAR Protocol (NEAR) $ 2.59 2.07%
pepe
Pepe (PEPE) $ 0.000007 1.21%
internet-computer
Internet Computer (ICP) $ 5.83 1.11%
mantle
Mantle (MNT) $ 0.814335 0.05%
gatechain-token
Gate (GT) $ 21.92 0.79%
ethereum-classic
Ethereum Classic (ETC) $ 17.77 0.22%
ondo-finance
Ondo (ONDO) $ 0.847338 1.62%
tokenize-xchange
Tokenize Xchange (TKX) $ 32.92 1.98%
aave
Aave (AAVE) $ 171.24 2.09%
coinbase-wrapped-btc
Coinbase Wrapped BTC (CBBTC) $ 82,803.19 1.37%