What happened

Shares of arts-and-crafts supply company The Michaels Companies (NASDAQ:MIK) went up on Friday, even though the overall market was down. Michaels was able to beat the downward trend thanks to a slew of analyst upgrades, including increased priced targets. 

As of 3:30 p.m. EDT, Michaels stock was up 9% for the day, and is now up 30% so far in 2020. But analysts think it's just getting started.

MIK Chart

MIK data by YCharts

So what

Count Credit Suisse, Loop Capital, and JP Morgan among the analyst firms pointing out Michaels' upside. According to The Fly, they believe Michaels stock will outperform over the next year with price targets ranging from $16 per share to $20 per share. That's exceptional upside for a stock trading around $10.50 right now.

Keep in mind that Michaels stock took a dive yesterday after it reported earnings for the second quarter of 2020. It seems the stock sold off then due to the broad market sell-off, not a fundamental reason; the Q2 report was quite good. All stores are now reopened and net sales were up 11% year over year. Furthermore, when adjusting the one-time charges related to liquidating its wholesales business, the company delivered a profit of $45 million. 

Considering yesterday's Q2 report was good, the upside reminder from the analyst firms today was enough to send Michaels stock higher.

A businessman draws an upward arrow over a stock chart displayed on a transparent touchscreen.

Image source: Getty Images.

Now what

Michaels isn't giving an outlook right now, but investors have an investor day to look forward to on Sept 24. Investor days are infrequent, special events where companies lay out long-term visions and financial goals. For Michaels, it plans to discuss some growth opportunities it sees and also outline a capital-allocation strategy.

These events often bring a renewed sense of direction, and depending on what management says, could make Michaels a good value stock to buy today.