Gap Inc. Outlook Brightens as Banana Republic and Athleta Show Recovery Potential

The Gap Inc. (NYSE:GAP) is one of the best consumer cyclical stocks to buy. On June 18, TD Cowen maintained its Buy rating on The Gap Inc. (NYSE:GAP) while cutting its price target for the clothing retailer’s shares from $31 to $29.

Gap Inc. Outlook Brightens as Banana Republic and Athleta Show Recovery Potential

Although the market undervalues the longevity of Gap and Old Navy, the firm believes that topline growth and margin expansion could be fueled by Banana Republic and Athleta’s potential comeback. TD Cowen stated that if consumer spending remains steady, there might be positive developments for the rest of the year.

According to TD Cowen, Gap’s improved fundamentals could lead the stock price to multiple expansion in the stock price. Additionally, the firm sees an opportunity for upside in Gap’s fiscal year 2025 projection, especially when it comes to tariff impacts.

A specialized retailer in the United States, The Gap Inc. (NYSE:GAP) offers clothing, accessories, and personal care products for men, women, and children. Some brands that fall under its umbrella include the likes of Athleta, Gap, Banana Republic, and Old Navy.

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Read More: 10 Best Magic Formula Stocks for 2025 and 10 Best Retirement Stocks to Buy According to Hedge Funds

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