Professional
Added to YB: 2024-09-19
Pitch date: 2024-09-06
GAP [bullish]
The Gap, Inc.
+11.9%
current return
Author Info
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Company Info
The Gap, Inc. operates as an apparel retail company. The company offers apparel, accessories, and personal care products for men, women, and children under the Old Navy, Gap, Banana Republic, and Athleta brands.
Market Cap
$8.3B
Pitch Price
$19.87
Price Target
26.00 (+17%)
Dividend
2.71%
Sector
Specialty Retail
Category
turnaround
The Gap, Inc.: Improving Profitability Provides Confidence in Turnaround; Shares Slightly Undervalued
GAP: CEO Dickson driving turnaround. Q2 sales +5%, Old Navy +5% comps. Gross margin +500bps to 42.6%. Operating margin 7.9%, beating est. by 240bps. FY24 outlook improved: sales +1%, op margin 6%, EPS $1.72. FVE $26, implies 15x P/E. Long-term 2-3% sales growth, 7.5% op margin by 2026.