Jefferies Raises PT on The Gap (GAP), Keeps Hold Rating
On May 21, Jefferies raised the price target on The Gap, Inc. (NYSE:GAP) from $26 to $29, keeping its Hold rating on the stock.
Corey Tarlowe from Jefferies has lifted the price target on GAP ahead of its Q1 2025 earnings release on May 29. The analyst is optimistic about the company's sales and believes that the firm's updated pricing and discounts during the quarter suggest a more promotional environment.
A customer shopping in a department store, browsing through racks of clothing.
The Gap, Inc. projects its net sales to be flat to up slightly during Q1 FY2025 compared to net sales of $3.4 billion in Q1 FY2024. While the gross margin is expected to expand slightly from 41.2% in Q1 FY2024. Tarlowe highlighted that the Q1 data through April 29 shows that discounts across the company's apparel brands were up 1.3% year-over-year, while average selling prices were down 0.9%. This promotional strategy was explicit across the company's Gap and Old Navy brands.
Tarlowe sees this promotional approach as an opportunity in the pressured retail sector, as he remains cautious regarding a handful of estimates and price targets among The Gap's peers.
The Gap, Inc. (NYSE:GAP) is a speciality apparel retailer in America. The company offers apparel, personal care products, and accessories for women, men, and children. Its prominent apparel brands include Old Navy, Gap, Athleta, and Banana Republic. The company operates through stores, online, third-party sellers, and franchise stores.
While we acknowledge the potential of GAP to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than GAP and that has 100x upside potential, check out our report about this cheapest AI stock.
Read Next: and .
Disclosure. None.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Washington Post
23 minutes ago
- Washington Post
Corbin Burnes needs Tommy John surgery. Prepare for aftershocks.
When Arizona Diamondbacks ace Corbin Burnes left a pitch up to CJ Abrams last Sunday and immediately motioned for trainers, everyone at Chase Field understood what it might mean. And when cameras caught Burnes appearing to express concern about his elbow, there was little reason to doubt his self-diagnosis. Burnes has been one of the game's most durable starters since the start of the 2021 season. He knew this would change that. Diamondbacks Manager Torey Lovullo on Friday confirmed what Burnes and others had already suspected: The ace to whom Arizona committed $210 million over the next six years will miss the rest of the 2025 season and most of 2026 because he needs Tommy John surgery. Burnes, 30, will have the procedure next week. All injuries spur ripples — sometimes through a team's active roster, sometimes deep into an organization's minor league depth. But an injury to Burnes, one of the game's preeminent starting pitchers anchoring the rotation of a would-be playoff team fighting for its life, will have aftershocks near and far. The first jolt, of course, will be felt in the desert, where the Diamondbacks are hovering around .500 while trying to steady a pitching staff that was disappointing even with Burnes. Their other ace, Zac Gallen, has been uncharacteristically mediocre. Promising righty Brandon Pfaadt has been getting pummeled and lefty Eduardo Rodriguez only returned from injury Friday, meaning the Diamondbacks cannot be sure what he will give them. As such, if they intend to contend, they will likely need to add a starter at or before the trade deadline. Demand was already high, and with several teams still weighing their commitment to 2025, supply remains limited. But the Burnes injury could also change more than just the Diamondbacks' 2025 calculus; Arizona's owner, Ken Kendrick, has invested in winning recently but could seize the whiff of mediocrity to balance his recently bloated budget. If the Diamondbacks fall out of contention — and without Burnes, the chances of that increase — they could seek trades for first baseman Josh Naylor (making $10.9 million this year), third baseman Eugenio Suarez ($15 million), Gallen ($13.5 million) and right-hander Merrill Kelly ($7 million), all of whom would represent significant savings even with just the post-deadline portions of their salaries gone. Any savings could be crucial, because Burnes's injury also complicates Arizona's offseason. Gallen will be a free agent for the first time, and he will almost certainly want to test the market. Kelly will be a free agent, too. So is Jordan Montgomery, who also underwent Tommy John surgery this year. That leaves Arizona with only three sure things in next year's rotation: Rodriguez, Pfaadt and Ryne Nelson, who was in Arizona's bullpen but has started three games for the Diamondbacks this year. They will need more to contend in the National League West, which means they might need to be major players in this year's offseason starting pitching market, even though they just gave Burnes the largest pitching contract in their history. Fortunately for anyone seeking starting pitching this winter, options abound. Gallen, Framber Valdez and Dylan Cease headline a class that will also include Ranger Suárez, Chris Bassitt and Zach Eflin, not to mention the dozen or so strong starters who could opt out of deals if they so choose. But one more team on the prowl increases demand this winter — just like one more seller changes the entire trade deadline a few months earlier. For that reason, the aftershocks of the Burnes injury will also be felt in New York and Los Angeles and Chicago and beyond. If the Diamondbacks do decide to sell, even an underperforming Gallen would be one of the more coveted assets available — a potential fate-alterer for any postseason team. Suarez, too, offers the kind of clubhouse pep and on-field power that would make him a highly sought after deadline option. The Yankees, for example, have been hunting for a third base solution all year. Naylor has plenty of pop and postseason experience, too. Kelly has proven himself to be as tough as they come. If the Diamondbacks sell, any one of those players could change a team's October trajectory, if the stars align. Arizona is currently one of several teams that expected to contend and are underachieving. The Boston Red Sox, Atlanta Braves, Baltimore Orioles and Texas Rangers are all hoping to stave off a deadline sale by rejuvenating their chances over the next two months. The more that do so, the higher demand for Arizona's assets will be. The Diamondbacks have not been ones to cave in recent years, in large part because few teams know better how quickly fates can change. In 2023, they found themselves two games under .500 on August 11. They ended up in the World Series. But rallies like those are hard to engineer even with an annual Cy Young contender in the rotation. Without one … well, the contending vultures are starting to gather in the desert.
Yahoo
24 minutes ago
- Yahoo
Has Warren Buffett made his best move ever selling his Apple stock?
It's never a good idea trying to second-guess the Oracle of Omaha. Warren Buffett sold a huge chunk of his Apple (NASDAQ:AAPL) stock last year. It wasn't the first time he trimmed his position in the tech giant. Back in 2021, he admitted selling was 'probably a mistake'. But, amid recent share price weakness, I doubt he will repeat the same line this time. Recent soundings from Apple CEO Tim Cook seem to indicate he has taken a leaf out of Buffett's playbook. In a recent earnings call, he pushed investors to be patient as it attempts to roll out AI features in the iPhone. 'Not first, but best' was how he put it in an interview last year. In an investing landscape measured in quarterly earnings, though, many don't have much patience. In some respects, he is right. Three years into the generative AI revolution and not one consumer product has emerged, other than ChatGPT, of course. And that's despite the industry spending hundreds of billions of dollars, and with the might of the media hyping the technology on an almost daily basis. Recently, Jony Ive, the architect instrumental in the design of the iPhone, sold his company to OpenAI for $6.5bn. At the not-for-profit startup, he is working on what has been described as a 'screen-free' device. Some reports highlight that mass production could start as early as 2027. The threat is clearly on Apple's radar. During the ongoing Google anti-trust trial, one of Apple's senior executive stated: 'You may not need an iPhone 10 years from now, as crazy as that sounds.' Given the present state of hardware technology and the extremely vague statements that have come from Sam Altman regarding no-screen devices, I'm not willing to give much credence to these remarks. But, of course, that could change in the years ahead. Apple has a history of not rushing into a new technology, until its full potential is understood. It was a little-known company when General Magic invented the first smartphone. It didn't invent the music player, either. The biggest short-term risk to the stock is tariffs. Apple has undoubtedly been the biggest beneficiary of outsourcing manufacturing to China. It has certainly been a major contributor in pushing the valuation to $3trn. Trump's ambition of seeing the iPhone mass produced in the US is unlikely to ever happen, in my opinion. With consumers being squeezed from all directions these days, I don't believe they would ever stomach paying up to $3,000 for one. Tim Cook has already guided to expect $900m in additional costs over the next quarter. A tiny figure, yes, but I can't see it ending there. Without price increases, the frothy valuation looks unsustainable. As I just said, I'm not sure that consumers will be as obliging as in the past and accept such increases. As for Buffett, he still holds a significant chunk of Apple stock. But with a trailing price-to-earnings of 32, I'm not sure the risks are fully priced in. Therefore, I won't be investing. The post Has Warren Buffett made his best move ever selling his Apple stock? appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Andrew Mackie has no position in any of the shares mentioned. The Motley Fool UK has recommended Apple. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025
Fox News
24 minutes ago
- Fox News
Guinea pigs share cucumber perfectly by splitting skin and core
All times eastern Maria Bartiromo's Wall Street Maria Bartiromo's Wall Street FOX News Radio Live Channel Coverage
