GAP (NYSE:GAP) Price Target Raised to $27.00

GAP (NYSE:GAP) had its price target hoisted by Bank of America from $26.00 to $27.00 in a research note released on Friday,Benzinga reports. The firm currently has a neutral rating on the stock.

GAP has been the subject of a number of other reports. Jefferies Financial Group cut shares of GAP from a “buy” rating to a “hold” rating and dropped their price target for the stock from $29.00 to $23.00 in a research note on Wednesday, August 12th. Evercore set a $20.00 price objective on shares of GAP and gave the stock an “in-line” rating in a research report on Friday, May 29th. TD Cowen decreased their price objective on shares of GAP from $26.00 to $23.00 and set a “buy” rating for the company in a research note on Tuesday, August 18th. BTIG Research set a $26.00 target price on GAP in a research report on Thursday, July 30th. Finally, Barclays upped their target price on GAP from $20.00 to $23.00 and gave the company an “equal weight” rating in a research note on Friday. Two research analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating, ten have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of $27.21.

GAP Price Performance

NYSE GAP opened at $23.48 on Friday. The company has a quick ratio of 1.11, a current ratio of 1.82 and a debt-to-equity ratio of 0.38. The company has a fifty day moving average of $20.06 and a two-hundred day moving average of $22.84. The firm has a market capitalization of $8.45 billion, a price-to-earnings ratio of 7.01, a PEG ratio of 1.36 and a beta of 2.05. GAP has a 52 week low of $18.11 and a 52 week high of $29.36.

GAP (NYSE:GAP) last posted its quarterly earnings data on Thursday, August 27th. The company reported $0.52 earnings per share for the quarter, beating analysts’ consensus estimates of $0.48 by $0.04. GAP had a net margin of 8.14% and a return on equity of 19.72%. The business had revenue of $3.65 billion for the quarter, compared to analysts’ expectations of $3.69 billion. During the same quarter in the previous year, the business posted $0.57 earnings per share. The business’s revenue was down 2.0% compared to the same quarter last year. GAP has set its FY 2026 guidance at 2.350-2.450 EPS. On average, analysts predict that GAP will post 2.38 earnings per share for the current year.

GAP Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 28th. Shareholders of record on Wednesday, October 7th will be given a $0.175 dividend. This represents a $0.70 annualized dividend and a yield of 3.0%. The ex-dividend date of this dividend is Wednesday, October 7th. GAP’s payout ratio is 20.90%.

Hedge Funds Weigh In On GAP

Institutional investors have recently modified their holdings of the stock. Cullen Frost Bankers Inc. purchased a new stake in shares of GAP in the fourth quarter valued at approximately $26,000. Plato Investment Management Ltd bought a new stake in GAP during the 4th quarter valued at $28,000. Global Retirement Partners LLC bought a new stake in GAP during the 2nd quarter valued at $29,000. Mitsubishi UFJ Asset Management Co. Ltd. purchased a new stake in shares of GAP in the 2nd quarter worth $50,000. Finally, Quantbot Technologies LP purchased a new stake in shares of GAP in the 2nd quarter worth $73,000. 58.81% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting GAP

Here are the key news stories impacting GAP this week:

• Positive Sentiment: Quarterly earnings beat expectations: Adjusted EPS was $0.52, exceeding the $0.48 consensus estimate. Gross margin expanded 20 basis points to 41.4%, helping Gap outperform operating-profit expectations despite weaker sales. Gap names Michael Francis Old Navy CEO as quarterly profit beats estimates
• Positive Sentiment: Profit outlook raised: The company now expects fiscal 2026 EPS of $2.35 to $2.45, above the roughly $2.33 analyst consensus. Management cited continued momentum at the Gap brand, margin discipline and strength at Banana Republic. Gap lifts annual profit forecast on strength of namesake brand
• Positive Sentiment: Old Navy leadership reset: Michael Francis, a retail veteran with experience at Walmart and Target, will become Old Navy’s president and CEO on November 2, replacing Haio Barbeito. Investors appear hopeful that Francis can improve the company’s largest brand. Gap shares jump after Old Navy brings in new CEO to revive brand
• Positive Sentiment: Analyst support increased: TD Cowen and BTIG raised their price targets to $27 and assigned “buy” ratings. Bank of America also raised its target to $27, while Morgan Stanley lifted its target to $23 but retained an “equal weight” rating.
• Neutral Sentiment: Sales remained soft: Second-quarter revenue fell 2% year over year to $3.65 billion, below the $3.69 billion consensus, while comparable sales declined 1%. Full-year revenue guidance of about $15.6 billion is slightly below analyst expectations. Gap Inc. Reports Second Quarter Fiscal 2026 Results
• Negative Sentiment: Brand performance was uneven: Old Navy reported sluggish comparable sales, and Athleta continued to face pressure. The need for a leadership change underscores execution risks even as Gap and Banana Republic show stronger momentum.

About GAP

Gap Inc is a global specialty retailer renowned for its portfolio of apparel and accessories brands, including Gap, Banana Republic, Old Navy and Athleta. The company designs, sources and markets clothing across a broad price range and style spectrum, catering to men, women and children. Its offerings extend from everyday wardrobe essentials such as denim, tees and outerwear to performance and lifestyle pieces, reflecting each brand’s distinct identity and price point.

Founded in San Francisco in 1969 by Donald and Doris Fisher, Gap Inc has grown into one of the world’s largest apparel companies.