Stephens analyst Rick Nelson lowered his price target on The Michaels Companies to $26 from $30 following the company's in-line Q4 results. In a research note to investors, Nelson noted that the company's guidance fell well below the consensus, adding that the company is planning to utilize one third of its tax reform benefits to invest in strategic initiatives, like re-formatting 235 stores, and is planning to close 94 Aaron Brothers locations. Nelson continues to like Michaels' high operating margins, strong free cash flow and stock buybacks. Nelson backed his Overweight rating.