UPDATE: Bank of America Upgrades Overstock.com to Buy on Strong Q1 Results

In a report published Friday, Bank of America analyst Nat Schindler upgraded the rating on Overstock.com OSTK from Underperform to Buy, and raised the price target from $12.00 to $20.00. In the report, Schindler noted, “Overstock (OSTK) reported Q1 rev/adj. EBITDA of $312mn/$12mn, above our $282mn/$8mn ests. The top-line beat was due to higher than expected partner rev growth of 22% y/y vs. 9% estimate while the bottom-line benefited from better operating expense control. We believe strong Q1 results are not just a head fake (something Overstock has been notorious at doing in the past) but believe the company is turning the corner as will continue to benefit from easy y/y comps, better controlled operating expenses, and new marketing and growth initiatives.” Overstock.com closed on Thursday at $15.70.