UBS Warburg Downgrades Gap to 'Neutral'

Analyst Richard Jaffe says the retailer will face more challenging comparisons in the second half of the year

UBS Warburg downgraded Gap (GPS ) to neutral from buy.

Analyst Richard Jaffe says Gap's share price currently reflects an optimistic outlook that a turnaround is in place, and that Holiday momentum will continue in 2003. He believes the future is uncertain, and that it is likely that new management will experience "hiccups", particularly when facing more challenging comparisons in the second half.

He maintains his estimates, and cut the $19 target to $16.

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