Markets & Finance

ST Robinson Humphrey Lowers Gap to 'Equal-Weight'


ST Robinson Humphrey downgrades Gap (GPS) to equal-weight.

Analyst Dennis Van Zelfden downgraded from overweight. He notes August same-store sales were below his +6% estimate, disappointing since it compared to -2% last year. Also he notes the company faces increasingly tough comparisons beginning in October, although he acknowledges the two-year combined comparison remain relatively easy.

Assuming a multiple of 18 on next year's earnings per share is reasonable, Gap would have to earn about $1.15 per share to justify Thursday morning's price. He notes although that earnings per share target is reachable, the stock would still be fairly valued, in his opinion.


Tim Cook's Reboot
LIMITED-TIME OFFER SUBSCRIBE NOW

Sponsored Financial Commentaries

Sponsored Links

Buy a link now!

 
blog comments powered by Disqus