Investment Banks Continue To Look Forward To Gap'S Recovery Prospects.

With the first recorded growth in the same store sales in the past 15 months in June, coupled with the expectations of investors for the performance revitalization plan, since the start of 52 weeks in mid May, the new low has been $17.

The price of Inc. NYSE:GPS has been rebounded by 47.8%.

Investment banks continue to look forward to the recovery prospects of Gap Inc. Cape group, which is considered to be the largest in the US.

Franchised retailers will usher in a real turning point.

Wells Fargo & Co. NYSE:WFC (NYSE:WFC) Wells Fargo raised its bid price and earnings outlook, while Wolfe Research LLC also raised its rating.

Gap Inc. (NYSE:GPS) was 3.25% higher at $25.13 on Monday.

Wells Fargo & Co., Ike Boruchow, a senior analyst at Wells Fargo Bank, predicts that the same store sales pressure will be reduced for the largest brand Old Navy Navy, and the cost reduction plan announced by the Gap Inc. cover group will have a good protection effect for the next year's profit. Therefore, the short term outlook is more positive than before.

According to the data, in June, the sales of Gap Inc. & amp; GE group had a 2% increase in the same store, which was far better than 3.2% of the market expectations, which mainly depended on the same store sales growth of the Old Navy Old Navy 5%, which offset the 1% and 4% decline of Gap cap and Banana Republic banana respectively.

The group pointed out that the improvement of passenger flow in the Old Navy Old Navy during the period promoted the positive data in June.

In the past 8 months, the old navy of Old Navy, which had been supported by the group, was worried. 6 months, the same store sales declined, and the brand also lost its meritorious President Stefan Larsson in October last year.

In July, Ike Boruchow said that the group's overall sales promotion was still higher than that of the same period last year, but the level has stabilized. Especially the Old Navy Navy, the Old Navy brand. Therefore, he expects the group will give a two quarter 0.48 EPS forecast over the market forecast when it releases the July sales data, which may reach US $0.53-0.55.

He also pointed out that in three months, the sales of the Old Navy Old Navy shop had begun to grow negative for one year, when the contrast base was lower, which also gave the brand and even the group a confidence to develop in a positive direction.

Although Gap Inc. is still facing overstock, price declines and others.

In the long term structural problems such as fierce brand competition, Ike Boruchow still revised the EPS forecast in the fiscal year from 1.88-2.22 dollars to 1.90-2.24 dollars.

Ike Boruchow also believes that it benefited from the recent "upsurge" environment of retail stocks and the strong trend of Coach Inc. (NYSE:COH), Lululemon Athletica Inc. (NASDAQ:LULU), Nike Inc. (NASDAQ:LULU), Nike, NYSE:COH, Lululemon, Inc., NASDAQ:LULU, Nike, Inc., and so on. The target price was raised to $25-27, and the original target price was $20-22, but the rating of "flat market" was maintained.

In the environment of economic instability, consumers generally cling to their purse strings, department stores and clothing retailers are in the doldrums. TJX Cos. Inc. and Ross Stores Inc. and so on have become the major growth drivers of the US retail industry. It is precisely because of their vigorous sales in the first half of the year that the Retail Association of the United States NFR raised its annual retail sales forecast from 3.1% to 3.4%.

As for Gap Inc., Moodie was rated as the biggest "bottle" of American Apparel Retailing.

Wolfe Research LLC raised Gap Inc. (NYSE:GPS) from "flat market" to "win the market".

The bank is also looking forward to the recovery of the Old Navy Old Navy from the second half of the year, and believes that the data such as free cash flow and dividend rate of the group can play a supporting role.