Michaels' Stock Upgraded After Stock Pullback

Shares of Michaels Cos. Inc. rose 2.5% to $25.05 in premarket trade Tuesday after the stock was upgraded to outperform from neutral at Credit Suisse. A recent pullback in Michaels' shares has given the stock a favorable risk/reward profile, said analyst Seth Sigman. He reiterated a $29 12-month price target on the stock, implying 19% upside from Friday's closing price. Michaels' shares have declined by 19% in the past three months, underperforming the S&P 500 , up 3.5%. Sigman believes the company may be positioned to improve comparable sales and margins in the second half of the year, despite setting a low bar in its last earnings report.