In a report released yesterday, Zachary Fadem from Wells Fargo maintained a Hold rating on Michaels Companies (MIK), with a price target of $17. The company’s shares closed yesterday at $16.32, close to its 52-week low of $14.82.
“We believe this outlook shows that MIK still has work left to drive sustainable comp growth (guide flat at midpoint), and recent cost efforts (sourcing, fulfillment, etc.) have yet to be sufficient enough to offset ongoing distribution headwinds. While encouraging Q3 results are a step in the right direction, we remain on the sidelines, as industry trends remain stagnant, traffic has been negative for 3 straight quarters, and margins continue to deteriorate. Reiterate Market Perform.”
According to TipRanks.com, Fadem is a 4-star analyst with an average return of 7.0% and a 57.1% success rate. Fadem covers the Services sector, focusing on stocks such as National Vision Holdings Inc, Floor & Decor Holdings Inc, and Advance Auto Parts.
Currently, the analyst consensus on Michaels Companies is a Moderate Buy with an average price target of $18.33, which is a 12.3% upside from current levels. In a report released yesterday, Loop Capital Markets also maintained a Hold rating on the stock with a $18 price target.
Michaels Companies’ market cap is currently $2.81B and has a P/E ratio of 8.82. The company has a Price to Book ratio of -1.65.
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Michaels Cos., Inc. is an arts and crafts specialty retailer, which engages in the provision of materials, project ideas, and education for creative activities. It operates through the following segments: Michaels-U.S., Michaels-Canada, Aaron Brothers, Pat Catan’s, and Darice.