4:10 PM · 22 June 2020

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
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