Barclays Downgrades Gap to Equal-Weight, Lowers Price Target to $19.00

Barclays downgraded Gap (GAP) to "Equal-Weight" from "Overweight" and lowered the price target to $19.00 from $24.00, a decrease of 20.83%. The downgrade reflects a re-evaluation of Gap's current market standing and future prospects. Historical analyst activities have shown a trend of downward adjustments in recent months. The average target price for Gap is $27.69 with a high estimate of $35.00 and a low estimate of $13.00, implying an upside of 30.62% from the current price of $21.20.

Barclays has downgraded Gap (GAP) to "Equal-Weight" from "Overweight," reducing its price target to $19.00 from $24.00. The downgrade reflects a re-evaluation of Gap's current market standing and future prospects. This decision comes amidst a trend of downward adjustments in recent months, with other analysts also lowering their price targets due to various factors.

UBS analyst Jay Sole recently lowered Gap's price target to $23.00 from $27.00, citing uncertainty around the company's fiscal year 2025 gross margin guidance due to new U.S. tariffs [1]. Similarly, TD Cowen adjusted its price target from $31.00 to $29.00 but maintained a Buy rating, citing potential growth for Gap and Old Navy brands [3].

Barclays' decision to lower the price target to $19.00 reflects a more cautious stance on the company's fundamentals. The firm's analysts believe that the broader sector risks and technical weakness in the REIT sector are factors that warrant a more conservative approach. Despite the recent earnings report, which showed strong quarterly earnings of $1.87 per share, the stock has faced technical weakness and divergent analyst ratings [2].

The average target price for Gap is $27.69, with a high estimate of $35.00 and a low estimate of $13.00, implying an upside of 30.62% from the current price of $21.20. However, the recent downward trend in analyst ratings suggests that investors should closely monitor institutional activity, earnings releases, and technical indicators for potential catalysts that could influence the stock's performance.

References:
[1] https://www.tipranks.com/news/the-fly/gap-price-target-lowered-to-23-from-27-at-ubs-thefly
[2] https://www.ainvest.com/news/barclays-raises-digital-realty-trust-pt-141-maintains-underweight-rating-2508/
[3] https://www.investing.com/news/analyst-ratings/ubs-lowers-gap-stock-price-target-to-23-on-tariff-uncertainty-93CH-4206533