NEW YORK, NY / ACCESSWIRE / May 16, 2018 / Gap shares were on the rise on Tuesday despite any positive catalyst. The company had apologized earlier in the week for selling a T-shirt with an incorrect map of China on it. Shares of Ulta also leaped ahead after an Oppenheimer analyst raised his price target on the stock and upgraded it to "outperform."

RDI Initiates Coverage on:

Ulta Beauty, Inc.
https://rdinvesting.com/news/?ticker=ULTA

The Gap, Inc.
https://rdinvesting.com/news/?ticker=GPS

Ulta Beauty, Inc. shares closed up 1.36% on less than 1 million shares traded yesterday. The beauty supply chain saw a slight pop after Oppenheimer upgraded the stock to an "outperform" rating from "perform." Analyst Rupesh Parikh also upped his price target on the stock from $220 to $280. According to Parikh, Ulta's management team deserves credit for implementing new initiatives on the merchandising front to stabilize comp trends and introduce a "meaningful amount" of innovation at stores. He also notes that the stock is trading around 21.8x next 12 months P/E multiple. He also noted the potential for improvement in comparable-store sales. Shares of Ulta had seen a 23% climb in April according to data from S&P Global Market Intelligence.

Access RDI's Ulta Beauty, Inc. Research Report at:
https://rdinvesting.com/news/?ticker=ULTA

The Gap, Inc. shares closed up 2.57% on Tuesday with nearly 8 million shares traded. The apparel company had been in hot water recently for selling a T-shirt that had an incorrect map of China. The company apologized on Monday for the incident and said that it would implement "rigorous reviews" to prevent such a mistake from happening again. The company said in a statement posted on its Weibo account, "Gap Inc. respects the sovereignty and territorial integrity of China. We've learned that a Gap brand t-shirt sold in some overseas markets failed to reflect the correct map of China. We sincerely apologize for this unintentional error." The T-shirt had been posted on Weibo by a person who said that Chinese territories, including south Tibet, South Chain Sea, and the island of Taiwan, had been left off the map. The incorrect T-shirts were pulled from the Chinese market and destroyed. Recently Telsey Adivsory Group upgraded Gap to an "outperform" rating from "market perform." Gap will be reporting its first quarter 2018 earnings results on May 24th after the close.

Access RDI's The Gap, Inc. Research Report at:
https://rdinvesting.com/news/?ticker=GPS

Our Actionable Research on Ulta Beauty, Inc. (NASDAQ: ULTA) and The Gap, Inc. (NYSE: GPS) can be downloaded free of charge at Research Driven Investing.

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