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Analysts take a crack at Gap after earnings

Published 11/18/2016, 08:02 AM
Analysts take a crack at Gap after earnings
GAP
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WFC
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  • Citi moves to a Sell rating on Gap (NYSE:GPS) after digesting the company's earnings report and conference call. Analyst Paul Lejuez thinks the Gap brand will continue to struggle. He notes Q4 is off to weak start for the retailer.
  • Cowen rates Gap at Market Perform and assigns a price target of $25. The firm says traffic is still the key risk.
  • Wells Fargo (NYSE:WFC) is worried that guidance from Gap for the key holiday period only limped in even after merchandise margins improved in Q3. WF keeps a Market Perform rating and sets a valuation range of $24 to $25 on Gap.
  • Jefferies thinks Q3 was a bottoming out of fundamentals for Gap. The firm's Buy rating and $36 price target stand out.
  • Previously: Gap EPS in-line, beats on revenue (Nov. 17)
  • Previously: Old Navy shows improvement for Gap in Q3 (Nov. 17)
  • Gap -6.81% premarket to $28.62.


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