GAP: Jefferies still on 'hold'
(CercleFinance.com) - On Friday, an analyst at Jefferies has confirmed his "Hold" recommendation on the Gap stock, as the group announced that it no longer wanted to make "Old Navy" an independent company.
"The decision to stop pursuing a company split is now the right one, given Old Navy's more volatile recent fundamental profile, costs of a split, and the impact on employee morale, in our view. Damage has been done and will take time to heal, but guidance looks better than feared, which is a positive," the broker said.
Jefferies confirms its target price of 17 dollars.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
"The decision to stop pursuing a company split is now the right one, given Old Navy's more volatile recent fundamental profile, costs of a split, and the impact on employee morale, in our view. Damage has been done and will take time to heal, but guidance looks better than feared, which is a positive," the broker said.
Jefferies confirms its target price of 17 dollars.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.