B.Riley FBR analyst Susan Anderson reiterated a Hold rating on Gap (GPS) today and set a price target of $21. The company’s shares closed last Monday at $19.18.
Anderson said:
“We attended The Gaps’ (GPS) Analyst Day meeting in NYC on 9/12, featuring presentations/ discussion with Gap, Inc. CEO Art Peck, ON CEO Sonia Syngal, and CFO Teri List-Stoll. The presentation focused on separation of the company into GapINC consisting of Janie & Jack. Management laid out expected annual dis-synergy expenses for the last year, estimated to be $70M-$90M for ON and $90M-$110M for GapINC, on a net basis. We performed a sum-of-the-parts (SOTP) analysis that showed a total company value of $21, to which GapINC contributed $5 and ON was $16. This is lower than our previous analysis of $32 due to lower multiples we are now applying given negative sales trends—though these multiples could expand if sales reverse.”
According to TipRanks.com, Anderson is a 2-star analyst with an average return of 0.3% and a 43.2% success rate. Anderson covers the Consumer Goods sector, focusing on stocks such as Lululemon Athletica Inc, Turning Point Brands, and Columbia Sportswear.
Gap has an analyst consensus of Hold, with a price target consensus of $20, representing a 3.3% upside. In a report released yesterday, Guggenheim also reiterated a Hold rating on the stock.
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Gap’s market cap is currently $7.21B and has a P/E ratio of 7.84. The company has a Price to Book ratio of 1.99.
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Gap, Inc. operates as a global apparel retail company. It offers apparel, accessories, and personal care products for men, women and children. The company operates through segments: Gap Global, Old Navy Global, Banana Republic Global, Athleta, and Intermix.
