Analysts Offer Insights on Services Companies: Gap (NYSE: GPS) and Six Flags (NYSE: SIX)

By Carrie Williams

Companies in the Services sector have received a lot of coverage today as analysts weigh in on Gap (NYSE: GPS) and Six Flags (NYSE: SIX).

Gap (NYSE: GPS)

FBR Capital analyst Susan Anderson reiterated a Hold rating on Gap (NYSE: GPS) today and set a price target of $28. The company’s shares opened today at $28.25.

Anderson noted:

“GPS reported 3Q16 EPS of $0.60, in line with FBR/consensus of $0.60, which excludes a $0.09 negative impact associated with previously announced store closures and streamlining measures and was in line with $0.59–$0.60 EPS guidance provided on November 7 during GPS’s October SSS call. The –3% comp for 3Q was primarily driven by the negative impact from the Fishkill distribution center fire. Management reiterated 2016 EPS of $1.87–$1.92 even though 3Q16 was better than expected, implying a lower 4Q16 versus consensus. Management is cautious on 4Q given a fall off in traffic throughout November and additional expenses related to occupancy for the new Times Square flagship, lapping bonus reversals LY , and additional marketing expense.”

According to TipRanks.com, Anderson is a 4-star analyst with an average return of 3.5% and a 53.3% success rate. Anderson covers the Services sector, focusing on stocks such as Ascena Retail Group, Abercrombie Fitch, and ClubCorp Holdings.

Currently, the analyst consensus on Gap is Hold and the average price target is $26, representing a -8.0% downside.

In a report issued on November 8, Mizuho Securities also reiterated a Hold rating on the stock with a $26 price target.
Six Flags (NYSE: SIX)

FBR Capital analyst Barton Crockett reiterated a Buy rating on Six Flags (NYSE: SIX) today and set a price target of $62. The company’s shares opened today at $56.01.

Crockett wrote:

“We recently hosted investor meetings with Six Flags and were encouraged. Near term, the seasonally small 4Q16 and 1Q17 look great because of rising consumer interest in themed experiences.”

According to TipRanks.com, Crockett is a 5-star analyst with an average return of 7.2% and a 59.8% success rate. Crockett covers the Services sector, focusing on stocks such as Liberty Media Corporation Series A Liberty SiriusXM Common Stock, Cinemark Holdings Inc, and Regal Entertainment.

Currently, the analyst consensus on Six Flags is Strong Buy and the average price target is $64, representing a 14.3% upside.

In a report issued on November 10, Janney Montgomery also maintained a Buy rating on the stock with a $62 price target.