Gap

GAP · NYSE

$23.47−$0.07 (−0.30%)TodayMarket closed · Oct 20, 7:59 PM ET

Prev close $23.54

GAP analyst rating

HoldConsensus of 17 analysts over the last 12 months. 35% rate it a buy.

Strong buy0
Buy6
Hold11
Underperform0
Sell0

12-month price target · 21 analysts

Average $26.91 (+14.6% upside)

Low: $21.21
Now: $23.47
High: $44.10

Upgrades and downgrades

The latest rating actions, newest first

GAP analyst upgrades, downgrades and rating actions
Firm	Date	Action	Rating	Price target	Hit rate
Needham	Oct 16, 2026	Initiates	Hold	—	46%
BMO Capital	Sep 9, 2026	Initiates	Market Perform	$23.00	74%
Goldman Sachs	Aug 31, 2026	Maintains	Buy	$25.00 → $27.00	53%
Wells Fargo	Aug 28, 2026	Maintains	Equal-Weight	$22.00 → $23.00	54%
UBS	Aug 28, 2026	Maintains	Buy	$40.00 → $42.00	50%
Barclays	Aug 28, 2026	Maintains	Equal-Weight	$20.00 → $23.00	55%
TD Cowen	Aug 28, 2026	Maintains	Buy	$23.00 → $27.00	61%
Morgan Stanley	Aug 28, 2026	Maintains	Equal-Weight	$21.00 → $23.00	56%
B of A Securities	Aug 28, 2026	Maintains	Neutral	$26.00 → $27.00	52%
BTIG	Aug 28, 2026	Maintains	Buy	$26.00 → $27.00	55%

The case for and against

Updated Oct 14, 2026

Bull case

Gap is supported by a clear operational turnaround at Old Navy, where management has largely moved through weak seasonal inventory and improved product, pricing, and marketing execution, helping traffic and women’s denim conversion recover. The broader portfolio is also strengthening, with Gap brand showing regained relevance through better assortments, storytelling, and lower discounting, while 2025 sales rose 2% and comparable sales increased 2.8% amid eight consecutive quarters of positive comps. Financially, the company posted FY25 gross margins of 40.8%, ended 2025 with $2.9 billion in cash and equivalents, and returned $726 million to shareholders, suggesting improving earnings power and solid capital discipline.

Bear case

Gap is facing a fragile fundamental setup because Old Navy, which generates more than half of sales, posted a 4% decline in sales and comps as weaker women’s seasonal demand and softer traffic offset better performance at Gap and Banana Republic. Margin pressure is also intensifying, with 1Q26 gross margin at 40.5%, down 130 bps year over year, and operating margin falling to 5.2% as tariffs, SG&A deleverage, and investment timing weighed on profitability. Although inventory discipline and lower discounting have helped merchandise margins, the company’s dependence on a mixed brand portfolio and a tougher discretionary spending backdrop keep earnings quality and growth momentum under pressure.

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