Gap stabilizes in a challenging consumption environment, focuses on efficiency instead of expansion, and emphasizes brand focus. UBS upgrades and sees over 50% upside potential.

The stock of Gap (GAP) is currently forming a potential breakout setup. It is a global multi-brand retailer, uniting a portfolio of four main brands (Old Navy, Gap, Banana Republic, and Athleta). The company reported robust, brand-driven demand that continued despite a challenging consumption environment following the last quarter. The pipeline is primarily supported by strong brand momentum effects: Old Navy, Gap, and Banana Republic achieved positive comparable sales again, with Old Navy highlighted at +6% in comparable sales and Gap at +3%....