Gap Inc. Poised for Strong Q1 Performance and 20% Share Price Return, Says Analyst

Gap Inc (GAP – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst yesterday. Analyst Paul Lejuez from Citi reiterated a Buy rating on the stock and has a $33.00 price target.

Paul Lejuez’s rating is based on the anticipation of a stronger-than-expected first-quarter performance by Gap Inc., particularly driven by the Gap brand’s sales and gross margin improvements. The analyst expects the company to exceed consensus earnings per share estimates, projecting a significant increase in comparable sales for the Gap brand.
Furthermore, Lejuez believes that the company’s management will maintain its fiscal year 2025 earnings guidance, which is seen as a conservative move given the current momentum at the Gap brand. Despite macroeconomic uncertainties and tariff challenges, the analyst sees a balanced risk-reward scenario, with an expected share price return of 20%, leading to an increased target price.

In another report released on May 19, TD Cowen also maintained a Buy rating on the stock with a $31.00 price target.

Based on the recent corporate insider activity of 80 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of GAP in relation to earlier this year.