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Gap (NYSE:GPS) shot higher in early trading on Tuesday after TD Cowen upgraded the mall retailer to a Buy rating after having it set at Hold.
Analyst Jonna Kim pointed to potential upside to the FY24 consensus estimates on Gap (GPS) due to the solid topline momentum combined with margin expansion on continued inventory and expense management.
Kim also expects the new denim cycle to act as a near-term catalyst for Gap and Old Navy and boost the company’s overall back-to-school season. Notably, Kim also sees improving product assortment at Old Navy, early signs of recovery at Athleta, and collaborations that have contributed to driving cultural relevance.
TD Cowen boosted its price target on Gap (GPS) to $30.
Shares of Gap (GPS) rallied 4.11% in premarket action to $25.82 vs. the 52-week trading range of $8.51 to $30.75. The Seeking Alpha Quant Rating on Gap (GPS) is flashing Strong Buy due to strong factor grades for momentum, revisions, and growth.