According to Morgan Stanley, the first quarter for Gap could be the start of a longer period for the company. Analyst Kimberly Greenberger undertook Gap from neutral, saying Thursday’s disappointing quarterly report showed the company grapples with internal issues and a tough consumer environment. Greenberger wrote, “The 1Q22 EPS miss materializes, and the updated fiscal year guidance proves the negative EPS risk we highlighted at YTD is well-founded. Consistent mis-execution and potentially declining macro/industry headwinds ahead.” The negative leaves room for revision.” According to Refinitiv, Gap reported a loss of 44 cents per share, higher than the 13 cents expected by analysts. The retailer also said it now expects year-over-year declines in the “low to mid-single digits range” in 2022. Morgan Stanley said Gap could be forced to cut its full-year guidance again in the coming months because of issues. The company is facing “We are moving back to underweight on what we see as a potentially prolonged period of depressed earnings and cash flow,” Greenberger wrote. Morgan Stanley lowered its price target on Gap from $13 to $8 per share. In premarket trading on Friday, shares of Gap were trading near $9 per share, down 19% from the previous close. Morgan Stanley wasn’t the only big firm to downgrade Gap. JPMorgan also moved the stock underweight following the earnings report. — CNBC’s Michael Bloom contributed to this report.