{"id":40232,"date":"2025-05-31T11:37:15","date_gmt":"2025-05-31T11:37:15","guid":{"rendered":"https:\/\/quickassetsmarket.com\/index.php\/2025\/05\/31\/analyst-explains-why-market-is-wrong-in-selling-gap-stock-on-tariff-warning\/"},"modified":"2025-05-31T11:37:15","modified_gmt":"2025-05-31T11:37:15","slug":"analyst-explains-why-market-is-wrong-in-selling-gap-stock-on-tariff-warning","status":"publish","type":"post","link":"https:\/\/quickassetsmarket.com\/index.php\/2025\/05\/31\/analyst-explains-why-market-is-wrong-in-selling-gap-stock-on-tariff-warning\/","title":{"rendered":"Analyst explains why \u2018market is wrong\u2019 in selling Gap stock on tariff warning"},"content":{"rendered":"
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Gap Inc (NYSE: GAP) shares plunged some 20% on Friday, rattled by concerns over tariffs and their potential impact on profit margins.<\/p>\n

However, according to Matt Boss, a retail analyst at JPMorgan and an Extel Analyst Hall of Famer, the market is overreacting\u2014and there\u2019s a compelling case to buy the dip in Gap stock.<\/p>\n

Why did Gap shares fall?<\/h2>\n

Today\u2019s selloff in GAP shares was triggered by investor fears over an estimated $150 million in incremental tariffs hitting Gap and its brands like Old Navy.<\/p>\n

This tariff burden has been factored into the stock price at a low double-digit multiple, equating to roughly $5 to $6 in equity value removed from the shares, Boss explained.<\/p>\n

Despite these concerns, Gap reported solid fundamentals<\/a> in its latest quarterly results, with same-store sales up mid-single digits at core Gap and low single digits at Old Navy. <\/p>\n

The company also outlined an expected 8% to 10% multi-year bottom-line growth driven by steady sales gains.<\/p>\n

Where the market is wrong<\/h2>\n

Matt Boss emphasized that tariffs are far from a new issue for Gap stock and its retail peers, many of whom have been aggressively reducing their exposure to China, traditionally a major source of tariff risk.<\/p>\n

“Gap will exit this year with only 3% of its sourcing coming from China,” the JPM analyst revealed in a CNBC interview<\/a> today, adding “on average, our group has a high single-digit China impact today, down from 20% in 2019.”<\/p>\n

Retailers are mitigating tariff pressure through diversified sourcing, strategic pricing adjustments, and operational efficiencies.<\/p>\n

Some companies are cautiously implementing low to mid-single-digit price increases, while others are waiting to see the final tariff rates before passing costs onto consumers.<\/p>\n

JPMorgan sees opportunity<\/h2>\n

Despite recent volatility, Boss remains optimistic on Gap\u2019s turnaround story<\/a> and rates the stock as overweight.<\/p>\n

He believes fair value lies in the mid-$30s for GAP shares, well above current prices, contingent on management\u2019s execution of its plan.<\/p>\n

Pullbacks like the recent selloff, he said, create compelling buying opportunities for investors willing to look beyond short-term tariff noise.<\/p>\n

While tariffs have rattled the market, the fundamental outlook for Gap stock and other well-managed retailers remains intact.<\/p>\n

As Matt Boss notes, investors should see the recent selloff in GAP not as a warning sign but as a buying opportunity in a sector undergoing selective, durable recovery.<\/p>\n

Other Wall Street analysts agree with JPM\u2019s view on GAP shares as well, given the consensus rating on the multinational clothing and accessories retailer currently sits at \u201coverweight\u201d.<\/p>\n

Analysts have an average price target of a little over $27 on Gap Inc, which indicates potential for a more than 20% upside from current levels. <\/p>\n

The post Analyst explains why ‘market is wrong’ in selling Gap stock on tariff warning<\/a> appeared first on Invezz<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Gap Inc (NYSE: GAP) shares plunged some 20% on Friday, rattled by concerns over tariffs and their potential impact on profit margins. However, according to Matt Boss, a retail analyst at JPMorgan and an Extel Analyst Hall of Famer, the market is overreacting\u2014and there\u2019s a compelling case to buy the dip in Gap stock. Why <\/p>\n","protected":false},"author":1,"featured_media":40233,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-40232","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-investing"},"_links":{"self":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/40232","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/comments?post=40232"}],"version-history":[{"count":0,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/40232\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media\/40233"}],"wp:attachment":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media?parent=40232"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/categories?post=40232"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/tags?post=40232"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}