Deutsche Bank Starts Gap, Inc. (GPS) at Sell

Deutsche Bank initiated coverage on Gap, Inc. (NYSE: GPS) with a Sell rating and a price target of $21.

Analyst Paul Trussell said, "We are initiating coverage of GPS at Sell with a $21 PT as we forecast negative comp trends and depressed margins to continue. In our view, GPS is currently over-stored (supported by our proprietary analysis) with an unfavorable pricing position vs. fast fashion peers. In addition, the large number of management changes over the past two years provides us little comfort that product fit and fashion quickly improves. Lastly, we are concerned that an upcoming debt maturity and weakening FCF limit future buyback support."

For an analyst ratings summary and ratings history on Gap, Inc. click here. For more ratings news on Gap, Inc. click here.

Shares of Gap, Inc. closed at $23.41 yesterday.

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