NEW YORK (TheStreet) -- Shares of Gap Inc. are down by 1.01% to $41.15 in pre-market trading on Friday, after Credit Suisse downgraded its rating on the clothing, personal care products, and accessories retailer to "underperform" from "neutral." The firm said it trimmed its rating on Gap as a result of mounting foreign exchange and deflationary pressures. Credit Suisse cut its price target on Gap stock to $37 from $40 and lowered its full year 2016 earnings estimates to $2.90 from $2.95 per share. Exclusive Report: Jim Cramer's Best Stocks for 2015 STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. The firm also slashed its full year 2017 earnings forecasts to $3.06 from $3.14 per share. Separately, TheStreet Ratings team rates GAP INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation: "We rate GAP INC (GPS) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, expanding profit margins and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results." Highlights from the analysis by TheStreet Ratings Team goes as follows: GAP INC has improved earnings per share by 11.1% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, GAP INC increased its bottom line by earning $2.75 versus $2.32 in the prior year. This year, the market expects an improvement in earnings ($2.76 versus $2.75). The current debt-to-equity ratio, 0.48, is low and is below the industry average, implying that there has been successful management of debt levels. 43.73% is the gross profit margin for GAP INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 8.83% is above that of the industry average. Net operating cash flow has increased to $118.00 million or 22.91% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -17.29%. You can view the full analysis from the report here: GPS Ratings Report STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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