Gap falls as Jefferies downgrades stock to 'hold' rating
BUZZ-Gap falls as Jefferies downgrades stock to 'hold' rating ** Shares of apparel retailer Gap GAP.N fall 1.2% to $20.7 premarket
** Jefferies downgrades stock to "hold" from "buy" rating; also cut PT to $23 from $29, representing a 9.7% upside to the stock's last close
** Brokerage says "the Gap brand turnaround is working, but Old Navy survey and promo trends are unfavorable"
** Jefferies says increased discounting at Old Navy and continued pressure on average selling prices remain concerns, with these trends potentially lasting longer than expected
** Gap risks underperforming expectations if Old Navy fails to show meaningful improvement, especially amid a more challenging second-half environment, adds brokerage
** 12 of 21 brokerages rate the stock "buy" or higher, 9 "hold"; their median PT is $26 - LSEG-compiled data
** As of last day's close, stock down 18.1% YTD
(Reporting by Kanishka Ajmera in Bengaluru)
((mail to: Kanishka.Ajmera@thomsonreuters.com))
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