JPMorgan Upgrades Gap Stock to Overweight

Gap Inc's shares surged around 5% after JPMorgan Chase upgraded the stock to 'overweight' from 'neutral' and raised the price target from $28 to $30, indicating a potential 24% upside. Analyst Matthew Boss highlighted the company's steady revenue growth, with four consecutive quarters of increases and seven of expanding market share. CEO Richard Dickson has reportedly positioned the company at an 'inflection point' for continuous improvement, supported by enhancements in merchandising and marketing across its brands. The firm also noted a strong start to the holiday shopping season, aided by favorable weather and a focus on trendy items. Despite the positive outlook, the consensus among analysts remains mixed, with several still rating the stock as 'hold' or lower. Year-to-date, Gap's stock has gained approximately 16%, reflecting a recovery from earlier losses and solid quarterly earnings performance.