Crypto EcoBlog
Gap (GPS) stock is in the green after JPMorgan upgraded it to neutral from underweight. The stock has managed to gain around 28% in May as the economy started to reopen step-by-step.Gap Inc (NYSE: GPS) stock was up in the double digits during Monday trading after analysts upgraded the company amidst the slow but sure economy reopening. Today its price is rising as well.In his distribution note, JPMorgan analyst Matthew Boss raised his rating on the retail group’s shares to neutral from underweight. Its price target was also elevated to from . As a result, Gap stock went up more than 12% to nearly . On Tuesday, the stock went up for some more – rising by 4.40% to .32.According to the investment banking company, the greatest weaknesses at the company’s main brands, Gap and the
Topics:
<title> considers the following as important:
This could be interesting, too:
Wayne Jones writes Charles Schwab to Launch Spot Crypto ETFs if Regulations Change
Wayne Jones writes Here’s When FTX Expects to Start Repaying Customers .5B
Dimitar Dzhondzhorov writes Is Cryptoqueen Ruja Ignatova Alive and Hiding in South Africa? (Report)
Wayne Jones writes Casa CEO Exposes Shocking Phishing Scam Targeting Wealthy Crypto Users
Gap (GPS) stock is in the green after JPMorgan upgraded it to neutral from underweight. The stock has managed to gain around 28% in May as the economy started to reopen step-by-step.
Gap Inc (NYSE: GPS) stock was up in the double digits during Monday trading after analysts upgraded the company amidst the slow but sure economy reopening. Today its price is rising as well.
In his distribution note, JPMorgan analyst Matthew Boss raised his rating on the retail group’s shares to neutral from underweight. Its price target was also elevated to $11 from $7. As a result, Gap stock went up more than 12% to nearly $10. On Tuesday, the stock went up for some more – rising by 4.40% to $10.32.
According to the investment banking company, the greatest weaknesses at the company’s main brands, Gap and the Banana Republic, went on to affect its balance sheet, but it believes Old Navy is “benefitting larger picture from the disproportionate growth of ‘value retail.’” It added expectations for market share to be “up for grabs” as a result of department store chain JCPenney’s recent bankruptcy.
All Hopes in Athleta Brand
Be it what it may, JPMorgan assumed that the Athleta brand will be “well-positioned” to take advantage of the growth of the athletic apparel sector amongst the coronavirus health crisis. One thing is sure.
People were urged to stay at home and may have not buying new athletic or gym apparel. However, the same directive led to preventing the spread of the virus and therefore to greater health and wellness awareness. Let’s also mention that there was an increased demand for leisurewear and work-from-home fashion – two new moments that analysts claim could boost the brand up forward.
Stores owned and operated by Gap Inc., also a parent to brands Intermix and Janie & Jack were widely shut down across the whole country during the month of March. That led the company to decide to furlough a majority of its employees through the U.S. and Canada. Still, the company stated last month it intends to focus on reopening of approximately 800 locations by the end of May.
In April, the San Francisco-based chain warned that it might not have enough finance to cover its business through the end of 2020. In a filing with the Securities and Exchange Commission (SEC), it wrote that it would have to seek “additional sources of liquidity, including a combination of new debt financing or another short-term credit facility, in order to continue operations.” It had also stated it hadn’t been paying rent payments in North America and is currently battling off with commercial landlords in court.
All Eyes on Gap Earnings, Will They Affect the Stock Price?
One thing is sure, athleisure is, by all means, the fastest-growing category in the fashion industry, increasing wellness aspirations and celebrity endorsement on social media add incentive to the growth of this market. Wellness is also seen as the new status symbol, and rising numbers of consumers are demonstrating their healthy lifestyles on social media, posting photos of themselves wearing sports clothes and consumers prefer premium fashion choices that are both comfortable and stylish.
The Gap Inc earnings are scheduled to report first-quarter fiscal 2020 numbers on Jun 4, after market close. In the last reported quarter, the company had positive earnings of 41.5%. The Zacks Consensus Estimate for a fiscal first-quarter loss of 50 cents has significantly increased in the last month from a loss of 32 cents mentioned earlier. For revenues, the consensus mark is pegged at $2.56 billion, indicating a decline of 30.9% from the figure reported in the year-ago quarter.
Experienced creative professional focusing on financial and political analysis, editing daily newspapers and news sites, economical and political journalism, consulting, PR and Marketing. Teuta’s passion is to create new opportunities and bring people together.