Gap March volatility elevated into Q4 and revenue growth outlook Gap March call option implied volatility is at 39, April and June is at 31; compared to it 26-week average of 32 according to Track Data, suggesting larger near term price movement into the expected release of Q4 on February 23.
Credit Suisse remains cautious on The Gap Credit Suisse believes The Gap's (GPS) core brand continues to struggle and is losing relevance with consumers. The firm's analyst said Gap brand's value proposition is being eroded by the rise of low-cost "deep value" retailers with efficient supply chains and lower markdown risk. Credit Suisse said Gap's supply chain is reliant on long-lead times and design teams removed from production, which should lead to comp and earnings pressure. Credit Suisse rates The Gap an Underperform with a $34 price target.