GAP stock higher by nearly 7%

Gap  (GPS.US)  stock was upgraded by Wells Fargo to overweight from underweight. Also analysts lifted up share-price target to $19 from $8. Wells Fargo noticed strength of Gap’s women’s active wear brand, Athleta, and the significant value of company’s real estate holdings.

Analysts estimate that Athleta may be worth approximately $2.5 billion, and a sale of the brand could be  “highly value accretive”.

GAP'S real estate holdings, which include its San Francisco headquarters and four distribution centers, were valued at around  $1.9 billion.

“This real estate value is relevant when considering GPS’ enterprise value as a real asset that management could potentially look to monetize in the future via a sale leaseback transaction,” Wells Fargo said.

Gap  (GPS.US)  shares rose sharply during today's session. They have soared more than 48% over the last three months.  Breaking above the resisitance at $11.82 per share may trigger a bigger upward move towards recent highs at $13.76 per share. Local support can be found around $10.29 per share. Source: xStation5

This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.