MIK - Why The Michaels Companies Stock Is Soaring Today
Shares of The Michaels Companies (NASDAQ: MIK) soared on Monday. As of 1:38 p.m. EDT, the stock traded 51% higher based on a rosy analyst report.
The arts and crafts retailer reported first-quarter results last Thursday, showing a 28% year-over-year revenue drop and a net loss of $0.43 per share. Both results were lower than expected, but the stock rose by double-digit percentages anyway because Michaels also said that 79% of its stores were open for business.
Analyst firm J.P. Morgan pondered these results for a few days before releasing a glowing analysis of Michaels. The firm gave Michaels an "overweight" rating and added it to a focus list as a strong value idea. The price target was lifted from $7 to $13 per share, 135% above Friday's closing price and another 57% above the current share prices.