Gap Inc. shares increased by 3.16% following the announcement of improved growth projections for fiscal 2025. The company raised its net sales growth forecast to 1.7-2% and operating margin target to 7.2%, reflecting confidence in performance as the holiday season approaches.
In its Q3 fiscal 2025 results, Gap reported a 3% increase in net sales to $3.9 billion, with comparable sales up 5% year-on-year. Despite a 13.9% decline in net income, the company has shown resilience with seven consecutive quarters of positive growth.
Market sentiment has also been favorable, with the Nasdaq-100 and S&P 500 both showing gains. Analysts remain optimistic about Gap's future, with Morgan Stanley maintaining an Overweight rating and a price target suggesting further upside potential.
Wall Street analysts forecast GAP stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for GAP is 31.07 USD with a low forecast of 25.00 USD and a high forecast of 41.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Analyst Rating
Wall Street analysts forecast GAP stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for GAP is 31.07 USD with a low forecast of 25.00 USD and a high forecast of 41.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Buy
3 Hold
0 Sell
Strong Buy
Current: 26.980
Low
25.00
Averages
31.07
High
41.00
Current: 26.980
Low
25.00
Averages
31.07
High
41.00
Bradesco BBI
Rodolfo Ramos
Underperform -> Neutral
upgrade
$260
2026-01-05
Reason
Bradesco BBI
Rodolfo Ramos
Price Target
$260
AI Analysis
2026-01-05
upgrade
Underperform -> Neutral
Reason
Bradesco BBI analyst Rodolfo Ramos upgraded GAP Airports to Neutral from Underperform with a $260 price target.
BofA
Carlos Peyrelongue
Underperform -> Buy
upgrade
$252 -> $280
2025-12-11
Reason
BofA
Carlos Peyrelongue
Price Target
$252 -> $280
2025-12-11
upgrade
Underperform -> Buy
Reason
BofA analyst Carlos Peyrelongue upgraded GAP Airports to Buy from Underperform with a price target of $280, up from $252. The firm's double upgrade is driven by an expected adjusted EBITDA margin expansion of 433 basis points during the next two years on the back of the internalization of GAP's Technical Assistance Services, the analyst tells investors.
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Citi
Paul Lejuez
Neutral
maintain
$23 -> $25
2025-11-24
Reason
Citi
Paul Lejuez
Price Target
$23 -> $25
2025-11-24
maintain
Neutral
Reason
Citi analyst Paul Lejuez raised the firm's price target on Gap to $25 from $23 and keeps a Neutral rating on the shares.
UBS
Neutral
maintain
$25 -> $26
2025-11-21
Reason
UBS
Price Target
$25 -> $26
2025-11-21
maintain
Neutral
Reason
UBS raised the firm's price target on Gap to $26 from $25 and keeps a Neutral rating on the shares. Gap reported a "solid" Q3 report, the analyst tells investors in a research note.
About GAP
The Gap, Inc. is a specialty apparel company in America. The Company offers apparel, accessories and personal care products for women, men, and children. Its Old Navy, Gap, Banana Republic, and Athleta brands offer clothing, accessories and lifestyle products for men, women, and children. It is an omni-channel retailer, with sales to customers both in stores and online, through Company-operated and franchise stores, websites, and third-party arrangements. Its omni-channel services, including buying online pick-up in-store, order-in-store, find-in-store, and ship-from-store, as well as enhanced mobile-enabled experiences, are tailored across its collection of brands. Gap includes adult apparel and accessories; GapKids, babyGap, Gap Maternity, GapBody, and GapFit collections. Banana Republic is a premium lifestyle retailer celebrating exploration and self-expression through timeless quality, versatile fabrics, and exceptionally made womenswear, menswear, and home designs.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
