According to Morgan Stanley, Gap’s first quarter could have been a rough start to a much longer decline. Kimberly Greenberger analyst downgraded Gap’s stock to underweight. This was due to Thursday’s poor quarterly report that showed an internal problem and difficult consumer conditions. “The 1Q22 EPS miss materialized, & updated FY guidance proves the downside EPS risk we’ve highlighted YTD has been well-founded. Consistent mis-execution & a likely decelerating macro/industry headwinds leaves room for further negative revision,” Greenberger wrote. Gap reported a 44c per share loss, more than analysts expected at 13 cents. Refinitiv also reported that Gap expects its revenue to decline year-over-year in the “low to middle single digit range” by 2022. Morgan Stanley stated that Gap might have to reduce its full-year guidance due to problems facing the business. “We are moving back to Underweight on what we view as a potentially protracted period of depressed earnings & cash flow that could continue well into 2023e,” Greenberger wrote. Morgan Stanley has reduced its Gap price target to $8 per share, from $13. Gap shares were down 19% in premarket trades on Friday. They traded at near $9 per Share. Morgan Stanley wasn’t the only firm to downgrade Gap. JPMorgan changed the stock’s weight to underweight following the earnings reports. — CNBC’s Michael Bloom contributed to this report.