March 30 (Reuters) - Goldman Sachs added Gap Inc (GPS.N) to its conviction buy list and said it expects sales trends, particularly at the apparel company's Old Navy division, to improve in the coming months.

Gap Spring-Summer 2009

Analyst Michelle Tan said Gap made a major mistake in merchandise last year by trying to reposition the Old Navy brand as a "fast fashion" type retailer aimed at 20-year olds.

However, this year, improvements in spring product offering and a new marketing campaign should help drive sales at Old Navy, said the analyst, who raised her price target on the stock to $15 from $14.

Gap, which operates the Banana Republic, Old Navy, and its namesake stores, will also benefit as "apparel spending appears to be at least temporarily stabilizing," Tan said.

Shares of the company closed at $13.06 Friday on the New York Stock Exchange. (Reporting by Poojya Trivedi in Bangalore; Editing by Anne Pallivathuckal)