UPDATE: Janney Capital Upgrades Gap On Improving Business Model

Following an upbeat earnings report, Janney Capital upgraded shares ofThe Gap (NYSE: GPS) from Neutral to Buy on Friday.

Adrienne Tennant stated five reasons for the upgrade:

1. General sector strength, as Janney analysts expect softlines sector inventory to reduce. This may imply improving turnover ratios, lower holding costs, faster production and responsiveness.
2. Old Navy strength and momentum that is sufficient enough to offset weaker divisions
3. Best in class management team
4. Endless global growth opportunities
5. Improving margins

Gap shares traded recently at $45.05