JPMorgan Securities upgraded GAP to "overweight" with a new $30 target price
Shares of Gap Inc (NYSE:GAP) are 4.7% higher at $25.40 this morning, after a bull note at JPMorgan Securities. The analyst in question upgraded GAP to "overweight" from "neutral" and hiked its price target from $28 to $30 -- a 23.7% upside to Friday's close.
The apparel retailer saw its revenue grow for four straight quarters and its market share expand for seven. In addition, JPMorgan expects multi-year growth after the assortment reset at Athleta, while Gap is also experiencing a strong start to the holiday shopping season.
Gap stock boasts a 16% year-to-date gain, which was helped by an outsized move following the company's hiked annual forecast and third-quarter earnings and revenue beats. Despite this, analysts are still split, with nine of 18 covering brokerages rating GAP a "hold" or worse, thus leaving room for more upgrades.
The security just broke free from a five-month losing streak, rising 16.8% in November after that aforementioned earnings report. Now only is Gap stock now trading above its year-to-date breakeven mark, it's stretched its year-over-year lead to 20.8%. GAP is now moved back above $25, which has acted as a short-term ceiling in recent sessions.