Credit Suisse Upgrades The Michaels Companies (MIK) to Outperform

September 6, 2016 6:56 AM EDT
Get Alerts MIK Hot Sheet
Price: $23.13 +3.63%

Rating Summary:
    8 Buy, 7 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 30 | Down: 50 | New: 20
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Credit Suisse upgraded The Michaels Companies (NASDAQ: MIK) from Neutral to Outperform and maintains a price target of $29.00.

Analyst Seth Sigman sees favorable risk/ reward following the recent pull back in the stock, citing:

1) lower 2H bar, with potential for comps/ margins to improve after a somewhat disappointing Q2, supported by a number of merchandising and sourcing initiatives;

2) other EPS drivers - de-levering, tax benefits, FX;

3) unique model characteristics in an uncertain consumer environment: relative defensiveness/ less e-commerce risk/ continued positive traffic growth, which compares favorably to most other retailers;

4) consolidation optionality, which has been a big positive for leaders in other sectors;

5) attractive valuation.

For an analyst ratings summary and ratings history on The Michaels Companies click here. For more ratings news on The Michaels Companies click here.

Shares of The Michaels Companies closed at $24.41 yesterday.

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