03:02 PM EST, 03/03/2025 (MT Newswires) -- Gap's (GAP) upcoming Q4 earnings report could play out in a number of ways, UBS analysts said in an Monday note as they see a "balanced upside/downside skew around the event."

The investment firm said it expects "a relatively wide range of equally probable outcomes" when the company reports its Q4 results. On the one hand, UBS said it expects the company to issue Q1 guidance that would be below estimates, causing Gap's price-to-earnings ratio to contract.

The company could also initiate a 2025 outlook that would make consensus estimates and the stock's price-to-earnings ratio increase, UBS said.

Gap is due to report Q4 results on Thursday.

The firm has a neutral rating on the stock with a price target of $26.

Shares were 3.2% lower in recent trading.

Price: 21.88, Change: -0.73, Percent Change: -3.23