
Gap Inc (GAP) Stock Forecast & Price Target
Gap Inc (GAP) Analyst Ratings
Bulls say
Gap's financial position remains robust, closing the second quarter with cash, cash equivalents, and short-term investments totaling $2.4 billion, reflecting a 13% increase year-over-year. The company's comparable sales for the quarter rose by 1% year-over-year, indicating a modest recovery from the previous quarter's flat performance. Additionally, online sales experienced a growth of 3% year-over-year, showcasing a positive trend in e-commerce amidst an evolving retail environment.
Bears say
Gap's financial outlook is negative primarily due to a revised earnings per share (EPS) estimate of $2.05 for FY25, which marks a decrease from the previous estimation of $2.20 and lags behind the prior consensus of $2.16. The company's merchandise margin has contracted by 150 basis points, influenced by the effects of a revenue sharing agreement with its credit card partner from the previous year, which exacerbates concerns regarding profitability. Additionally, total sales remained stagnant year-over-year at $3.725 billion, falling short of the consensus estimate of $3.733 billion, highlighting ongoing challenges in revenue generation.
This aggregate rating is based on analysts' research of Gap Inc and is not a guaranteed prediction by Public.com or investment advice.
Gap Inc (GAP) Analyst Forecast & Price Prediction
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