Gap upgraded to ‘outperform’

Wall Street lifted its view of Gap on Friday, upgrading the retailer’s stock from “neutral” to “outperform.”

Analyst Betty Chen based the upgrade on stronger sales and improving customer traffic.

Chen said sales are rising at Gap, driven by its premium denim launch, and Old Navy due to stronger fashion and its back-to-school business. Revamped merchandise and marketing may boost customer traffic for the rest of the fiscal year, she said.

However, Banana Republic is still struggling with its fashion, but traffic is rising with the introduction of fall merchandise online and in stores, she added.