UPDATE: HSN Coverage Initiated by UBS

In a UBS report released Monday, analyst Eric Sheridan starts coverage on

, initiating a Buy rating with a price target of $70. The report notes, "Specifically, we believe HSNI's strong management team is laser focused on transforming the business into a power in domestic omnichannel commerce via strategic investments. Additionally, we believe HSNi has the ability to expand margins, increase FCF, & deliver consistent shareholder returns (M&A, buybacks, dividends) over the coming years." The industry outlook for eCommerce is optimistically driven by consumer retail migrating to online platforms for its convenience and accessibility. UBD expects HSN to capitalize on this trend and expand their profit margins and growth. HSNI closed last trading session at $57.89 and opened back up at 58.59. The price target expresses a 16% upside from current prices.