Wall Street Strategies Reiterates Sell On Gap

Wall Street Strategies is reiterating its Sell rating on shares of The Gap Inc. (NYSE: GPS) with a $17 price target on shares.

In a note to clients, Wall Street Strategies writes, "We are reiterating our Sell recommendation and $17.00 price target on Gap (GPS). Gap's management pointed to the 5% total sales growth rate in June as a success, but we think the comp performance by division was disappointing. In fact, in a specialty apparel sector that enjoyed surprisingly robust June comp prints Gap's showing truly stands out as unfavorable. Our interpretation of the situation surrounding the company is that weak product and subsequent promotions, and elevated costs, will hinder margin expansion in the medium-term."

At last check, shares of Gap were off 29 cents to $18.69, a loss of 1.5%.