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Fly News Breaks for February 3, 2020
Feb 3, 2020 | 16:43 EDT
BMO Capital analyst Simeon Siegel initiated coverage of Gap with a Market Perform rating and $18 price target. The analyst notes that the company's strongest business - Old Navy - may have just hit a revenue ceiling, and with its spin-off called off, the management resumes the challenge of operating "a collection of varying brands with a vast store fleet." Siegel warns that Gap revenue will continue to shrink due to external pressures, while its earnings-driving stock buybacks may slow as its net cash levels are reduced.