Retailer Michaels' Shares Make All-Time Record 58.6% Jump As JPMorgan Upgrades Stock

The Michaels Companies Inc. MIK shares made a record single-day jump on Monday as JPMorgan Chase & Company upgraded the company's stock.

MIK Rating, Price Target

JPMorgan analyst Christopher Horvers upgraded the rating from "neutral" to "overweight" and raised its price target to $13.

MIK represents the best upside potential at current prices, Analyst Says

Horvers said the arts and crafts retailer has an "attractive valuation" based on an expected re-rating to price-to-earnings ratio on earnings for this financial year, CNBC reported.

"Given increased optimism around the pace of economic recovery and a wide divide in valuation of haves (essential retailers) and have nots (value/justreopening/levered names), we looked at our universe for upgrade opportunities and believe MIK represents the best upside potential at current prices," the JPMorgan analyst told its clients, according to CNBC.

The retailer missed analyst expectations for the first quarter this year, reporting earnings per share of 43 cents.

MIK Price Action

Michaels shares closed 58.6% higher at $8.74 on Monday. The shares added another 2.5% in the after-hours session and traded at $8.96.