NEW YORK (TheStreet) -- The Gap (GPS) stock closed up 1.19% to $38.98 on Thursday after Cantor Fitzgerald increased its 2015 earnings estimates to $2.80 from $2.78 per share, and 2016 earnings estimates to $3.07 from $3.04.
The firm maintained its price target of $42 and a "neutral" rating on the stock.
Gap reiterated its focus on shortening its product cycle and developing a responsive supply chain, and the firm believes this will enable Gap to stay more on-trend and reduce the need for markdowns.
"We think initiatives such as fabric platforming, test and respond should increase flexibility, reduce costs, and shorten lead times," Cantor Fitzgerald analysts said.
Additionally, fiscal year 2016 appears to be the inflection point, as product is already purchased through the remainder of this year, Cantor Fitzgerald noted.
Gap is an apparel retail company that offers apparel, accessories, and personal care products under Gap, Banana Republic and Old Navy brands.
Separately, TheStreet Ratings team rates GAP INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate GAP INC (GPS) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, notable return on equity, reasonable valuation levels and expanding profit margins. We feel its strengths outweigh the fact that the company has had sub par growth in net income."