Gap's Brand Reinvention: Baird upgraded Gap's stock to outperform, citing successful brand reinvigoration strategies for Old Navy and Gap, with a new price target of $33, indicating a potential 22% gain.
Market Performance: Old Navy's consistent market share gains and Gap's improved customer acquisition and average unit retail are driving the company's turnaround, with expectations for achievable growth in 2026.
Profitability and Margins: Gap has seen significant profitability recovery, with gross margins increasing to 41.3% in fiscal 2024, attributed to improvements in product relevance, inventory management, and sourcing efficiencies.
Future Outlook: Analysts anticipate that Gap is well-positioned to benefit from macroeconomic tailwinds in 2026, supported by efficiency initiatives and a strong value proposition, despite cautious consumer spending.
GAP
$27.63+Infinity%1D
Analyst Views on GAP
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 28.69 USD with a low forecast of 24.00 USD and a high forecast of 36.00 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.
14 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 28.69 USD with a low forecast of 24.00 USD and a high forecast of 36.00 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.
8 Buy
6 Hold
0 Sell
Moderate Buy
Current: 27.060
Low
24.00
Averages
28.69
High
36.00
Current: 27.060
Low
24.00
Averages
28.69
High
36.00
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.
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.
Goldman Sachs
Buy
maintain
$26 -> $29
2025-11-21
Reason
Goldman Sachs
Price Target
$26 -> $29
2025-11-21
maintain
Buy
Reason
Goldman Sachs raised the firm's price target on Gap to $29 from $26 and keeps a Buy rating on the shares. The firm remains constructive on Gap following the Q3 beat and raise quarter, as the results demonstrate continued broad-based momentum in the core Old Navy and Gap brands, where strategic initiatives such as compelling fashion, culturally relevant marketing, and category expansion are resonating with consumers and driving solid comp growth, 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.
