Noor Ul Ain Rehman
2 min read
In This Article:
The Gap Inc. (NYSE:GAP) is one of the 13 Most Undervalued Retail Stocks to Buy Right Now. On June 5, Morgan Stanley Alexandra Straton maintained a Buy rating on The Gap Inc. (NYSE:GAP) with an associated price target of $27.00. The analyst based the rating on the company’s potential for growth and its strategic focus, stating that a significant factor supporting the optimistic outlook is management’s commitment to maintaining business health and consistency in the long term. This holds especially true when dealing with short-term challenges, including tariffs.
A fashion-forward woman walking confidently down the street wearing the company's latest denim jeans.
The analyst further reasoned that Gap Inc. (NYSE:GAP) has a transparent approach to both brand-specific and company-wide strategies, particularly in relation to competitive pricing and brand revitalization. This bolsters confidence in the company’s direction.
Gap Inc. (NYSE:GAP) also has the potential to expand its margins to historical levels over time, which Straton considers a key factor supporting the rating. The company’s improving profitability trajectories across all brands point at a promising development towards higher EBIT margins.
The Gap, Inc. (NYSE:GAP) is a specialty retailer in the US that offers apparel, accessories, and personal care products for women, men, and children. Its brand portfolio includes Old Navy, Gap, Banana Republic, and Athleta brands.
While we acknowledge the potential of GAP as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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Disclosure: None.
