) recent stock rally has much further to run as investors have yet to fully appreciate the exciting earnings potential of the clothing giant’s apparel chain Old Navy, according to analysts at Jefferies.

In a research note, reported on by the Financial Times, Jefferies named Gap as one of its top “Franchise Picks” and upgraded its price target for the company from $35 to $39. That massive vote of confidence sent shares in Gap up 6 percent to $27.6, continuing an impressive run for the stock which has been rallying ever since company executives announced a new strategic shift last week.

Gap plans to boost investment in the fastest growing parts of its business, including Old Navy, its athletic apparel line Athleta and its e-commerce platforms, while shutting down underperforming Banana Republic and flagship Gap stores. To get investors on board, the company also divulged a breakdown of profit margins across its various divisions…