Credit Suisse analyst Seth Sigman upgraded Michaels to Outperform saying shares offer favorable risk/reward following the recent pullback and reaffirmed its $29 price target. The analyst adds the 2H 2016 bar has been lowered with potential for comps/margins to improve, other earnings drivers include de-leveraging, tax benefits, and foreign exchange, and notes the company's unique model characteristics that include relative defensiveness, continued positive traffic growth, and less e-commerce risk.

Michaels announced lower prices on over 5,000 items across categories spanning arts, crafts, DIY and home decor, offering customers everyday savings on the products they shop the most. With these latest markdowns, Michaels is helping customers fuel the joy of creativity while maximizing value. Lower prices are now in effect across categories including home decor, art supplies, seasonal items, kids' projects, wall frames, and more. To keep creativity accessible for as many customers as possible, the prices of frequently bought items like paint, markers and pens have been reduced by up to 15%; adhesive and permanent vinyl, papers, stickers, and unfinished wood letters have been reduced by up to 20%; canvases have been reduced by up to 35%, and T-shirts have been reduced by up to 40%.