MIK - This J.P. Morgan Analyst Thinks Michaels Is Going to Double
Shares of The Michaels Company (NASDAQ: MIK) are up sharply today after J.P. Morgan analyst Christopher Horvers upgraded the stock to overweight with a share price target of $13, up from a previous $7 target. The analyst believes the arts and crafts retailer has the best upside potential from current prices in the group of retailers that were forced to close stores because of COVID-19.
Horvers said the boost in optimism on the economy as states have begun to reopen has created a value opportunity. Michaels said in its first-quarter earnings report last week that about 1,000 of its 1,273 stores have been reopened, including more than 500 in just the last month.