Gap, Inc. (GPS) PT Raised to $32 at Evercore ISI

Evercore ISI analyst Michael Binetti raised the price target on Gap, Inc. (NYSE: GPS) to $32.00 (from $24.00) while maintaining a Outperform rating.

The analyst comments "Tour of Force Across the P&L in 1Q: After a very solid Spring campaign (particularly at Old Navy) that focused much more on seasonal product and brand marketing messaging (compared to price point driven discount advertisements a year ago), we’re highly encouraged to see total GPS comp +3% in the quarter. More importantly, we’re particularly surprised that all 4 divisions comped positive in the quarter (Consensus didn’t model Athleta growth until 1Q25, and had BR comping negative going forward). Margin delivery was also far better than expected, with GM expanding +400bp (vs. Street +160bp) despite some signs of elevated promos in parts of the quarter. SG&A discipline was solid at 35.2% of revenues vs. Street 36.5% (ISI 36.6%)."

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