Gap price target raised to $15.50 from $13 at BofA

BofA raised the firm’s price target on Gap to $15.50 from $13 and keeps an Underperform rating on the shares. The company reported a solid Q4 beat, driven by stronger gross margin and a second consecutive quarter of positive comps at Old Navy, the analyst tells investors in a research note. The firm sees opportunity for gross margin expansion in the first half of 2024, but no further meaningful spending reduction. BofA expects Gap’s earnings growth to stall in the second half of the year.