Gap's Athleta brand appears undervalued because of the rising value of rival Lululemon, analyst says

An employee rings up a customer's purchases at the Athleta store in New York.
Ron Antonelli | Bloomberg | Getty Images

Gap's athletic apparel brand appears undervalued and could be a prime candidate an acquisition or spinoff, according to a new note from Gordon Haskett analyst Dan Bilson. 

Bilson said he would not be surprised if the upcoming earnings call for Gap hits on the future of Athleta, which appears undervalued relative to the surging rival Lululemon. The retail company is slated to release its second quarter earnings after the bell on Thursday. 

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