The Myer Holdings Ltd (ASX: MYR) share price is charging higher today.

Shares in the All Ordinaries Index (ASX: XAO) department store owner closed yesterday trading for 75 cents. In early afternoon trade on Thursday, shares are changing hands for 80 cents apiece, up 6.7%.

For some context, the All Ords is down 0.4% at this same time.

While today's strong performance will come as welcome news to shareholders, the Myer share price remains down a painful 35% in 2025. The All Ords retail stock closed out 2024 trading for $1.23 a share.

But for investors who've held on for the duration or those thinking about buying the dip, Myer stock may be poised to recoup those losses and then some.

Can the Myer share price more than double from here?

Morgan Stanley has a bullish outlook for Myer as the company works to integrate the Apparel Brands business it recently acquired from Premier Investments Ltd (ASX: PMV).

The Apparel Brands business is comprised of Just Jeans, Jay Jays, Portmans, Dotti, and Jacqui E.

As The Australian Financial Review reports, the broker is also optimistic that the company's new leadership and strategy could offer a sharp lift to the Myer share price.

"We think the market is underestimating its ability to restore growth and profitability," Morgan Stanley equity analyst Joseph Michael said.

Morgan Stanley has an overweight rating on Myer stock with a price target of $1.10 a share, or 37.5% above current levels.

However, despite a high execution risk, Michael said that if Myer can successfully integrate the Apparel Brands business, its share price could surge to $1.70. That represents a potential upside of 125%.

Myer trades on a 3.8% fully franked dividend yield (partly trailing, partly pending).

What's happening with the Apparel Brands merger?

The Myer share price closed up 6.1% on 23 January, the day that 96.2% of shareholders voted in favour of the merger.

Premier Investment shareholders were almost unanimous in their support.

Commenting on the shareholder approval on the day, Myer executive chair Olivia Wirth said:

We are delighted with the strong backing from Myer shareholders for the combination with Apparel Brands. Our shareholders have demonstrated their overwhelming support for the combination with Apparel Brands and our strategy to create a leading retail platform across Australia and New Zealand.

Wirth indicated that the acquisition could help boost the Myer share price.

"The combination will transform the Myer Group, creating a more resilient business with diversified earnings," she said.