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Citi upgrades Gap, says stock could jump 50% once Wall Street fairly values Athleta

A pedestrian walks by the closed GAP flagship store on August 18, 2020 in San Francisco, California.

Justin Sullivan | Getty Images

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Gap is trading at a price below the sum of its parts, and investors should buy in before the company figures out how to change that, according to a new note from Citi.

The bank upgraded the retail stock to buy from neutral, saying that it could be time for the company’s board to explore another spin-off or similar move after calling off the divestiture of Old Navy in January. 

“We believe the Board is open to taking corporate actions, which could include monetization as well as spin-offs,” the note said. 

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