Gap (GPS) 2016 EPS Still At Risk - Wedbush

Wedbush analyst, Morry Brown, sees cost cuts at Gap, Inc. (NYSE: GPS) improving EPS for 2017, but fundamentals of the company’s core businesses remain under pressure. 1Q's incremental information was largely centered on meaningful cost cuts, from a combination of closing doors internationally and corporate level cost saves. This shores up the outlook for 2017 EPS. However, it does not address ongoing challenges across all three of the company's core brands. There seems to be limited opportunity for a quick fix at any of the three divisions, and 2016 EPS remains at risk.

No change to Neutral rating. The price target moves to $20 (from $19).

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 $17.28 yesterday.

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