Gap's Shares Rise After Analyst Upgrade

Gap (NYSE: GPS) saw its shares rise more than 6.5% in Tuesday morning trading after Citigroup analysts confirmed their price target on the clothing retailer at $24, representing a more than 55% upside over the current share price. Most analysts are far less bullish on the stock, with most rating it neutral, but Citi upgraded its rating from neutral to buy. Its price target is also slightly more than $5 above Gap's 52-week high of $19.86.

Citi's analysts are particularly favorable toward Gap's Athleta brand for women and girls, pegging its value at approximately $3.6 billion. In the research note accompanying the rating increase, Paul Lejuez said "with the favorable positioning of athletic/casual retailers in a post-COVID world, GPS' Athleta brand stands out as having value that may not be getting recognized by the market (as many others in their space have rerated higher)."

Image source: Getty Images.

Source Fool.com