BofA lowered the firm’s price target on Gap (GAP) to $21 from $25 and keeps a Neutral rating on the shares. The firm, which remains concerned about tariff pressure, is cutting its estimates for FY25 and FY26 by 2% and 17%, respectively, to reflect a blended 21% tariff rate. Even factoring in lower earnings estimates, the stock trades at a valuation that the firm considers “fair for a retailer with positive sales momentum but margin pressure,” the analyst tells investors.
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