Gap (NYSE:GPS) is moving toward its historical high, and in response Standpoint Research has downgraded the stock after a strong runup over the last several months.
Standpoint said, "We picked The Gap GPS off its bottom when it broke below $18 on August 19. The shares have jumped > 25% since the recommendation and beat our benchmark S&P-500 by > 1000 basis points. Our target was $24 for 2011-2012. We got 75% of the $6 (33%) gain we were looking for in less than five months and have decided to lock this in. GPS is now trading at 1X sales and that is pressing up towards the top of its historical trading range – Side Note: Our Dec-14 recommendation Best Buy BBY is at < 0.3X. GPS is now trading at 12.4X trailing twelve months (record) earnings of $1.80 and 11.6X ($1.93) estimates for 2011-2012."
Gap, Inc., which was downgraded to "Hold," closed Friday at $22.14, dropping $0.32, or 1.42 percent.
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