Barclays Maintains Overweight Rating on The Gap (GAP), Lifts PT

On May 27, Barclays raised the firm's price target on The Gap Inc. (NYSE:GAP) to $33 from $26 and kept an Overweight rating on the stock. The rating came before the company's scheduled release of its fiscal Q1 2025 earnings on May 29.

The firm highlighted the brand's "promo inflection" to flat from its quarterly promotion tracker, stating that The Gap Inc. (NYSE:GAP) is undergoing a stabilization in its promotional activity. This suggests that it is on the path to a notable recovery, according to the firm.

In addition to this development, Barclays cited that the company's Old Navy brand is experiencing positive trends, which points towards a potential turnaround.

The Gap Inc.'s (NYSE:GAP) fiscal Q4 2024 results, reported on March 6, showed a 3% growth in comparable sales in the quarter for the company. Comps at Old Navy, which is its largest brand, also rose 3%. Fiscal Q4 2024 marked the eighth consecutive quarter of market share gains for the brand, reinforcing its market position.

The Gap, Inc. (NYSE:GAP) is a specialty retailer in the US that offers apparel, accessories, and personal care products for women, men, and children. Its brand portfolio includes Old Navy, Gap, Banana Republic, and Athleta brands.

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