Street View: Brokerages raise Gap's PT on strong Q3 results, tariff offset

GAP

21/11/2025 15:38

** Apparel maker Gap GAP.N on Thursday posted better-than-expected third quarter comparable sales and profit, helped by strong demand for Old Navy and Banana Republic apparel

 ** Shares of GAP rise nearly 7.3% to about $24.8

     ** Eleven of 20 brokerages rate the stock "buy" or higher and nine "hold"; median PT is $27 - data compiled by LSEG

STRONG Q3 RESULTS, HOLIDAY MOMENTUM AND TARIFF MITIGATION

     ** J.P. Morgan lifts PT to $36 from $32 on strong Q3 beat, improved FY25 outlook, with gross margin decline now seen at 50bps vs prior -90bps to -70bps and tariffs expected to be neutral by FY26

     ** BofA (lifts PT to $27 from $23) says GAP has a positive start to the holiday season as co posted healthy trends in its Old Navy and Banana Republic apparel; sees FY25/26 EPS $2.14/$2.18 from $2.08/$1.91 earlier

     ** Citigroup (lifts PT to $25 from $23) raises GAP's near-term profit estimates on solid Q3 performance, driven by fashion tailwinds and effective marketing; sees FY25/26 EPS of $2.17/$2.34 compared with prior estimates of $2.10/$2.19

(Reporting by Megavarshini G. Somasundaram in Bengaluru)

((Megavarshini.SomasundaramGnanasundari@thomsonreuters.com))