Martha Stewart Living Omnimedia (NYSE: MSO) shares rallied on Tuesday, responding to an upgrade from investment bank, Bear Stearns.

Analyst Michael Meltz believes the company is in a unique position to see growth, noting the shares are off 23 percent from 2007.

We continue to view MSO as a unique media growth story, with potential for rapid revenue profit growth intermediate-term as the company leverages its content across multiple platforms, Meltz said to clients on Tuesday.

Meltz said he believes the company's expansion into the home improvement is a key priority, and expects the firm's new partnership with Lowe's could bring in $10 million a year.

He raised his rating on the stock to peer perform from underperform., sending shares up through out the day.

The company closed up 4.44 percent gains, up 75 cents to $17.63 on the New York Stock Exchange.