The Michaels Companies (MIK) Lifted to $24 at BofA/Merrill Lynch on Solid Q2 Results

BofA/Merrill Lynch analyst Denise Chai reiterated a Buy rating and raised her price target on The Michaels Companies (NASDAQ: MIK) to $24.00 (from $20.00) following a 'clean beat' in its first quarter back as a public company.

Chai remains bullish as they believe store refreshes and other “Retail 101” initiatives are helping to drive increased market share and productivity. The view MIK as one of the most inexpensive growing Hardline retailers, trading on 9.6x 2015E P/E and 8.9x EV/EBITDA compared to a Hardline average of 15.8x and 9.1x, respectively.

The firm rasied FY 2014 EPS from $1.32 to $1.40, FY 2015 EPS from $1.67 to $1.71 and FY 2016 EPS from $1.93 to $2.00.

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 $16.54 yesterday.

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