Gap Downgraded; Lowe's, Discovery Communications on Analysts' Radar

In Wednesday's Analysts' Actions, analysts make some bearish calls on Gap (GPS) and some price target changes on Lowe's (LOW) and Discovery Communications (DISCA).
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In Wednesday's Analysts' Actions, analysts make some bearish calls on Gap (GPS) and some price target changes on Lowe's (LOW) and Discovery Communications (DISCA). Piper Jaffray lowered Gap's rating to UNDERWEIGHT from NEUTRAL, citing human capital departure. This comes on the news that Stefan Larsson, former Old Navy's global president and H&M executive is taking the helm at Ralph Lauren (RL). As a result, the firm dropped Gap's price target to $28 from $34. Analysts are also concerned about the increase in promotions at Old Navy, Gap and Banana Republic. In another analyst note, Credit Suisse raised Lowe's price target to $80 from $70. Analysts said 'Margin outlook should be improving from here.' The firm reiterated its OUTPERFORM rating on the stock based on the company's merchandising and service initiatives. Meanwhile, Jefferies reduced Discovery Communications' price target to $29 from $34. The firm maintained its HOLD rating on the stock, due to uncertainty around advertising and pay-TV subscriptions. On top of that, CEO David Zaslav said on Tuesday that the company will deliver low double-digit cash flow and earnings growth during the next three years. This is in-line with Jefferies' estimates but below Wall Street's. TheStreet's U-Jin Lee reports in New York.