Shares of Gap were up 6.9% to $32.95 in trading Monday.
Analyst Ike Boruchow, who kept his overweight rating on the stock, said in a note to investors that he came away from the meeting feeling more confident in Gap's go-forward prospects.
The analyst said Old Navy appears to be extremely well-positioned for market share gains this year, Athleta has meaningful runway for continued growth and Gap brand is showing greenshoots in its brand-health initiatives.
"A lot to like, see bull case building from here, stay long," Boruchow said. "With a solid 4Q print now behind us, we believe the bull case can continue to build from here."
The analyst said that he continues to see an undervalued portfolio - led by Old Navy and Athleta "with a call option on the Gap brand (First positive comp in US in 4Q since 2017, Yeezy launch upcoming) potentially adding gravy to thesis."
The Yeezy clothing line at Gap, created in partnership with musician and designer Kanye West, is expected by June 30.
Earlier this month, Gap missed fourth-quarter revenue estimates as same-store sales fell sharply at its Gap and Banana Republic stores, but the retailer posted better-than-expected earnings.
The company said that Gap Brand’s global footprint "was meaningfully impacted by COVID-mandated store closures and restrictions in Canada, China, Europe and Japan."
"Importantly, North America comparable sales were positive," Gap said in a statement.
Following the earnings report, J.P. Morgan analyst Matthew Boss raised his price target to $32 from $30 and affirmed his overweight rating.