Goldman cuts Gap stocks, says ‘rationalization’ of store not enough

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Gap’s pre-market shares have fallen by 4.4% and stocks are now selling from neutral (PT down from $27 to $23) following a downgrade from Goldman Sachs analyst Alexandra Walvis. The investment bank believes that an aggressive portfolio rationalization won’t be enough to revive the clothing brand. Walvis wrote in a note that several major stores have increased their inventory and promotional efforts following a holiday season which was tougher on retailers than expected.