Gap: Wedbush stays neutral after Q2 results
(CercleFinance.com) - Wedbush maintains its "neutral" rating on the Gap stock, along with its target price of 19 dollars, the day after the clothing chain published its Q2 results; in particular, EPS came in 10 cents above the consensus.
However, the broker noted, "Softer than expected traffic trends hurt the quarter, and led to elevated promotional levels in order to clear excess inventory as the weather turned positive."
While it views Gap as a "compelling" story, wit management focused on the right key initiatives that will be able to drive value over the long term, Wedbush prefers to "remain on the sidelines for now awaiting signs that a turnaround at struggling core Gap brand is taking shape".
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