Piper Jaffray Cuts Price Target on Gap, Inc. (GPS) Following September Comparable-Sales Results

Piper Jaffray maintained an Underweight rating on Gap, Inc. (NYSE: GPS), and cut the price target to $26.00 (from $28.00), following September comparable-sales results. Inventory levels are in need of re-balancing in order to end the quarter in a cleaner position.

Analyst Neely Tamminga commented, "We are updating our model to reflect the company's indications for a lower-thanexpected gross margin rate coming off of September comparable-sales results, in which the month produced a (1%) in "comp." Inventory levels are in need of re-balancing in order to end the quarter in a cleaner position. We have lowered our estimates for both FQ3 and FQ4 as well as our forward estimates. We continue to rate GPS shares with an Underweight rating. Our price target moves lower to $26 owing to our estimate revisions."

For an analyst ratings summary and ratings history on Gap, Inc. click here. For more ratings news on Gap, Inc. click here.

Shares of Gap, Inc. closed at $28.95 yesterday.

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