Gap upgraded to Buy from Neutral at Goldman Sachs

Goldman Sachs analyst Brooke Roach upgraded Gap to Buy from Neutral with a price target of $18, up from $10. While acknowledging that sales are "highly uncertain" given an unclear top line growth outlook for U.S. apparel overall, she believes Gap has an "idiosyncratic opportunity" to demonstrate sequentially strengthening execution and better margins into 2023, Roach tells investors. As one of the earliest companies to make key inventory mistakes, Gap had "a difficult year" in 2022, but that may also allow for modestly stronger comps in early 2023, the analyst added.