Investors should get off the sidelines on Gap given the retailer's potential for business improvement, according to Barclays.
Her $13 price target implies shares could rally 26.2% from Monday's close.
Yih said the company could see margin upside with a shift to cleaner inventory levels and mitigated freight challenges.
Despite the opportunity to recapture some of the margin, Yih noted the company can do more work to stabilize the business and make it more malleable to consumer demand signals.
Between the new management and potential for margin capture, she said the company's valuation multiple could be raised.
Persons:
Adrienne Yih, Yih, Richard Dickson, Chris Blakeslee, Alo Yoga, — CNBC's Michael Bloom
Organizations:
Barclays, Navy, Old Navy, Mattel
Locations:
Monday's, 2Q23, Banana