GAP (NYSE:GAP) Stock Price Expected to Rise, Bank of America Analyst Says

GAP (NYSE:GAP) had its price objective raised by Bank of America from $26.00 to $27.00 in a research report issued on Friday,Benzinga reports. The firm presently has a “neutral” rating on the stock. Bank of America‘s price objective would indicate a potential upside of 29.59% from the stock’s current price.

A number of other equities research analysts have also recently commented on GAP. TD Cowen decreased their price target on GAP from $26.00 to $23.00 and set a “buy” rating on the stock in a report on Tuesday, August 18th. Morgan Stanley restated an “equal weight” rating and set a $21.00 price objective on shares of GAP in a research report on Monday, July 6th. Barclays set a $23.00 price objective on shares of GAP in a research report on Friday. BTIG Research set a $26.00 price target on GAP in a report on Thursday, July 30th. Finally, Wells Fargo & Company reaffirmed a “cautious” rating on shares of GAP in a research note on Friday. Two equities research analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating, ten have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, GAP has an average rating of “Hold” and a consensus target price of $26.64.

GAP Trading Down 1.5%

NYSE:GAP opened at $20.84 on Friday. The company has a current ratio of 1.81, a quick ratio of 1.08 and a debt-to-equity ratio of 0.41. GAP has a 12 month low of $18.11 and a 12 month high of $29.36. The company has a market cap of $7.50 billion, a PE ratio of 8.20, a price-to-earnings-growth ratio of 1.25 and a beta of 2.05. The company has a 50 day simple moving average of $20.01 and a two-hundred day simple moving average of $22.87.

GAP (NYSE:GAP) last issued its quarterly earnings data on Thursday, August 27th. The company reported $0.52 earnings per share for the quarter, topping the consensus estimate of $0.48 by $0.04. The firm had revenue of $3.65 billion for the quarter, compared to analysts’ expectations of $3.69 billion. GAP had a net margin of 6.25% and a return on equity of 21.13%. The business’s quarterly revenue was down 2.0% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.57 EPS. GAP has set its FY 2026 guidance at 2.350-2.450 EPS. Research analysts forecast that GAP will post 2.33 earnings per share for the current year.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in GAP. Cullen Frost Bankers Inc. bought a new stake in GAP during the fourth quarter valued at about $26,000. Plato Investment Management Ltd purchased a new stake in shares of GAP during the fourth quarter valued at about $28,000. Global Retirement Partners LLC bought a new stake in shares of GAP in the 2nd quarter valued at about $29,000. Mitsubishi UFJ Asset Management Co. Ltd. bought a new stake in shares of GAP in the 2nd quarter valued at about $50,000. Finally, Quantbot Technologies LP purchased a new position in shares of GAP in the 2nd quarter worth approximately $73,000. 58.81% of the stock is owned by institutional investors.

Key GAP News

Here are the key news stories impacting GAP this week:

• Positive Sentiment: Gap reported adjusted earnings of $0.52 per share, exceeding the $0.48 analyst consensus. Gross margin expanded 20 basis points to 41.4%, helping the company outperform operating-profit expectations despite softer sales. Gap names Michael Francis Old Navy CEO as quarterly profit beats estimates
• Positive Sentiment: Management raised fiscal 2026 EPS guidance to $2.35-$2.45, above the roughly $2.33 consensus, reflecting confidence in continued profit improvement and cost discipline. The company has also returned $726 million to shareholders through buybacks and dividends year to date. Gap lifts annual profit forecast on strength of namesake brand
• Positive Sentiment: The Gap namesake brand and Banana Republic performed better than expected, providing evidence that the company’s brand turnaround is gaining traction and offsetting weakness elsewhere. Gap rallies after Banana Republic and its namesake brand outperform expectations
• Neutral Sentiment: Michael Francis, a former retail executive with experience at Walmart and Target, will become Old Navy’s president and CEO on November 2. Investors viewed the leadership change as a potential turnaround catalyst, although execution will take time. Gap announces leadership transition at Old Navy
• Negative Sentiment: Quarterly net sales fell 2% year over year to $3.65 billion, below the $3.69 billion consensus, while comparable sales declined 1%. Old Navy was the main weakness, prompting the leadership overhaul and limiting the outlook for revenue growth. Gap Inc. Reports Second Quarter Fiscal 2026 Results

GAP Company Profile

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.