- Morgan Stanley (NYSE:MS) analyst Kimberly Greenberger noted Gap Inc's (NYSE: NYSE:GPS) adjusted EPS loss per share of $(0.02) in Q4 beat expectations. But she finds it "difficult to avoid the conclusion that losing money in what should be one of the most profitable quarters every year suggests fundamentals and execution were gravely challenged."
- Greenberger thinks 2022 guidance is likely to prove "overly optimistic."
- She sees downside risk across multiple line items in the company's initial outlook. The analyst maintained an Underweight rating on Gap shares with a $14 price target.
- Related: Gap Q4 Earnings Highlights: Why Shares Are Popping After Hours
- BMO Capital analyst Simeon Siegel lowered the price target on Gap to $16 (16% upside) from $19 and kept a Market Perform rating on the shares.
- The analyst noted the company's earnings and revenue beat were offset by worse gross margins.
- Siegel added that while Gap guided above consensus, he remains "wary" that the path higher will be "as easy" as the outlook suggests.
- JPMorgan (NYSE:JPM) analyst Matthew Boss raised the price target on Gap to $20 (45% upside) from $17 and maintained a Neutral rating on the shares.
- Credit Suisse (SIX:CSGN) analyst Michael Binetti maintained Gap with a Neutral and reduced the price target from $20 to $16.
- Price Action: GPS shares are trading lower by 3.4% at $13.77 on the last check Friday.
| Mar 2022 | BMO Capital | Maintains | Market Perform | |
| Mar 2022 | Credit Suisse | Maintains | Neutral | |
| Mar 2022 | JP Morgan | Maintains | Neutral |
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