Gap Inc
GAP: XNYS (USA)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| >ZZ | LOCK|H!M | LOCK|FNh!&x |
Gap Earnings: Entering 2025 With Momentum After Positive Holiday Results; Shares Attractive
We intend to lift our $27 per share fair value estimate by a mid-single-digit rate after Gap revealed fourth-quarter results and a 2025 outlook above our expectations. Although we rate Gap as no-moat firm due to its years of struggles, CEO Richard Dickson has made progress in restoring some relevance to its four brands. Its financial stability has also improved as it achieved free cash flow to equity above $1 billion for the second consecutive year in 2024. Gap’s shares rose by about 18% in March 6 postmarket trading but remain attractive.
