- Morgan Stanley analyst Alex Straton reiterated an Underweight rating on the shares of Gap Inc (NYSE:GPS) and raised the price target slightly to $8 from $7.50.
- The analyst highlighted that Gap’s Q2 EPS came in slightly better-than-expected against lowered guidance, but fundamentals remain underwhelming.
- Straton added that the company withdrew FY22 guidance, suggesting visibility at an all-time low and leaving the market to its own devices on potential outcomes.
- She sees an opportunity for air freight and broader supply chain tailwinds in 2H22.
- Falling store traffic, eCommerce disintermediation, declining brand health, apparel price deflation, and falling margins are Straton’s concerns for Gap’s growth going forward.
- Price Action: GPS shares are trading lower by 1.55% at $9.85 on the last check Friday.
US Stocks Sink, Tech And Real Estate Hit Hard Amid Rate Concerns, Dollar Surge: What’s Driving Markets Wednesday?
Another day of losses shook up Wednesday’s stock trading session on Wall Street.
All major U.S. stock indices in the red, as investors expressed concerns that the Federal Reserve is not in a rush to reduce interest rates early this year.
