Gap price target lowered to $28 from $32 at Wells Fargo

Wells Fargo lowered the firm’s price target on Gap (GAP) to $28 from $32 and keeps an Overweight rating on the shares. The firm is bullish into Q3 and is raising numbers above Street. Despite concerns around comp volatility at Old Navy, Wells believes trends can remain positive, while gross margin upside should continue. At current levels, the risk/reward has become too compelling to ignore, the firm argues.