Key Takeaways
- JPMorgan upgraded Gap inventory after its analysts heard optimistic feedback concerning the attire retailer from its CEO and CFO.
- The financial institution mentioned CEO Richard Dickson urged the corporate was "at an inflection level shifting to 'steady enchancment.'"
- JPMorgan estimates fiscal 2025 and financial 2026 revenue can be above Wall Avenue expectations.
Gap (GAP) shares jumped roughly 7% Monday when JPMorgan upgraded the inventory and lifted the value goal, pointing to optimistic feedback from the attire retailer’s CEO and CFO after a gathering with the financial institution’s analysts.
JPMorgan raised its score on Gap to "obese" from "impartial," with a worth goal of $30, up from the earlier $28.
The analysts wrote in a notice to shoppers that CEO Richard Dickson "characterised the corporate at an inflection level shifting to 'steady enchancment' from 'fixing fundamentals.'" They added that Dickson's "consistency" plan is "constructed on a basis of elevated effectivity (i.e. stock mgmt, advertising, operational financial savings) and flywheel reinvestment (ala finest at school manufacturers) to drive multi-year development."
As well as, CFO Katrina O’Connell pointed to “annual operating margin expansion targeting historical levels of profitability.”
JPMorgan elevated its estimate for earnings per share (EPS) to $2.30 for fiscal 2025 and $2.53 for fiscal 2026, each greater than Wall Avenue forecasts.
Shares of Gap are up about 24% this yr.
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