Gap’s rough first quarter may just be the beginning of a longer period of downtime for the company, according to Morgan Stanley. Analyst Kimberly Greenberger lowered Gap’s rating to below neutral weight, saying Thursday’s disappointing quarterly report showed a company with internal issues and a difficult consumer environment. Greenberger wrote: “The error was made in Q1 Q1 this year, and the updated fiscal year guidance demonstrates that the YTD downside risks we highlighted were well-founded. Continued poor execution and potential slowdown in Macroeconomic/industry headwinds leave room for further negative review,” Greenberger wrote. Gap reported a loss of 44 cents a share, more than the 13 cents analysts had expected, according to Refinitiv. The retailer also said it now expects revenue to fall year on year in a “low single-digit to mid-single digit range” in 2022. Morgan Stanley said Gap may have to cut its annual guidance entirely again in the coming months due to the issues it faces. company. “We are moving back into Underweight in what we consider a potentially long period of lower earnings and cash flow that could last into 2023,” Greenberger wrote. Morgan Stanley lowered his price target on Gap to $8 a share from $13. In premarket trading on Friday, Gap shares were trading near $9 a share, down 19% from their previous close. Morgan Stanley wasn’t the only major company downgrading Gap. JPMorgan also turned the stock underweight after the earnings report. CNBC’s Michael Bloom contributed to this report.