Forecasting The Future: 6 Analyst Projections For Gap
6 analysts have expressed a variety of opinions on Gap (NYSE:GAP) over the past quarter, offering a diverse set of opinions from bullish to bearish.
The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 2 | 4 | 0 | 0 | 0 |
| Last 30D | 0 | 1 | 0 | 0 | 0 |
| 1M Ago | 0 | 0 | 0 | 0 | 0 |
| 2M Ago | 2 | 0 | 0 | 0 | 0 |
| 3M Ago | 0 | 3 | 0 | 0 | 0 |
Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $33.67, with a high estimate of $41.00 and a low estimate of $30.00. This upward trend is evident, with the current average reflecting a 23.2% increase from the previous average price target of $27.33.
Deciphering Analyst Ratings: An In-Depth Analysis
The standing of Gap among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Dana Telsey | Telsey Advisory Group | Raises | Outperform | $34.00 | $32.00 |
| Brooke Roach | Goldman Sachs | Raises | Buy | $32.00 | $29.00 |
| Jay Sole | UBS | Raises | Buy | $41.00 | $26.00 |
| Dana Telsey | Telsey Advisory Group | Raises | Outperform | $32.00 | $26.00 |
| Mark Altschwager | Baird | Raises | Outperform | $33.00 | $27.00 |
| Ike Boruchow | Wells Fargo | Raises | Overweight | $30.00 | $24.00 |
Key Insights:
- Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Gap. This information offers a snapshot of how analysts perceive the current state of the company.
- Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Gap compared to the broader market.
- Price Targets: Understanding forecasts, analysts offer estimates for Gap's future value. Examining the current and prior targets provides insight into analysts' changing expectations.
Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Gap's market standing. Stay informed and make well-considered decisions with our Ratings Table.
Stay up to date on Gap analyst ratings.
All You Need to Know About Gap
Gap retails apparel, accessories, and personal-care products under the Gap, Old Navy, Banana Republic, and Athleta brands. Old Navy generates more than half of Gap's sales. The firm also operates e-commerce sites, outlet stores, and specialty stores under various Gap names. Gap operates approximately 2,500 stores in North America, Europe, and Asia and franchises about 1,000 more in Asia, Europe, Latin America, and other regions. Gap was founded in 1969 and is based in San Francisco.
A Deep Dive into Gap's Financials
Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.
Revenue Growth: Gap displayed positive results in 3M. As of 31 October, 2025, the company achieved a solid revenue growth rate of approximately 2.95%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Consumer Discretionary sector.
Net Margin: Gap's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 5.99%, the company showcases strong profitability and effective cost management.
Return on Equity (ROE): Gap's ROE excels beyond industry benchmarks, reaching 6.67%. This signifies robust financial management and efficient use of shareholder equity capital.
Return on Assets (ROA): Gap's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.93% ROA, the company effectively utilizes its assets for optimal returns.
Debt Management: Gap's debt-to-equity ratio stands notably higher than the industry average, reaching 1.51. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.
The Significance of Analyst Ratings Explained
Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.
Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.
Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.
This article was generated by Benzinga's automated content engine and reviewed by an editor.