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

GAP (NYSE:GAP) had its price target increased by TD Cowen from $23.00 to $27.00 in a research note issued to investors on Friday,Benzinga reports. They currently have a buy rating on the stock.

Several other analysts have also weighed in on the stock. BTIG Research raised their price objective on shares of GAP from $26.00 to $27.00 and gave the stock a “buy” rating in a report on Friday. Morgan Stanley boosted their target price on GAP from $21.00 to $23.00 and gave the stock an “equal weight” rating in a report on Friday. Jefferies Financial Group lowered GAP from a “buy” rating to a “hold” rating and decreased their price target for the stock from $29.00 to $23.00 in a research report on Wednesday, August 12th. Barclays raised their price target on GAP from $20.00 to $23.00 and gave the company an “equal weight” rating in a report on Friday. Finally, Weiss Ratings downgraded GAP from a “hold (c+)” rating to a “hold (c)” rating in a research report on Tuesday, July 28th. Two analysts have rated the stock with a Strong Buy rating, five have given a Buy rating, ten have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus price target of $27.21.

GAP Price Performance

GAP opened at $23.48 on Friday. The firm has a market cap of $8.45 billion, a price-to-earnings ratio of 7.01, a PEG ratio of 1.36 and a beta of 2.05. The company has a debt-to-equity ratio of 0.38, a quick ratio of 1.11 and a current ratio of 1.82. The firm’s 50-day simple moving average is $20.06 and its 200-day simple moving average is $22.84. GAP has a twelve month low of $18.11 and a twelve month high of $29.36.

GAP (NYSE:GAP) last announced its quarterly earnings results on Thursday, August 27th. The company reported $0.52 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.48 by $0.04. The firm had revenue of $3.65 billion during the quarter, compared to the consensus estimate of $3.69 billion. GAP had a net margin of 8.14% and a return on equity of 19.72%. The firm’s quarterly revenue was down 2.0% on a year-over-year basis. During the same period last year, the firm posted $0.57 EPS. GAP has set its FY 2026 guidance at 2.350-2.450 EPS. Equities research analysts anticipate that GAP will post 2.38 EPS for the current fiscal year.

GAP Announces Dividend

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

Institutional Trading of GAP

Several hedge funds have recently modified their holdings of the stock. Public Employees Retirement System of Ohio increased its holdings in shares of GAP by 0.6% in the third quarter. Public Employees Retirement System of Ohio now owns 71,867 shares of the company’s stock valued at $1,537,000 after purchasing an additional 447 shares in the last quarter. Cullen Frost Bankers Inc. acquired a new position in GAP during the 4th quarter worth $26,000. Plato Investment Management Ltd acquired a new position in GAP during the 4th quarter worth $28,000. Global Retirement Partners LLC bought a new position in GAP in the 2nd quarter valued at $29,000. Finally, California State Teachers Retirement System boosted its position in GAP by 0.8% in the 2nd quarter. California State Teachers Retirement System now owns 226,506 shares of the company’s stock valued at $4,940,000 after buying an additional 1,703 shares during the last quarter. 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: 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.