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7 Reasons Why This Overstock Analyst Is Bullish

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7 Reasons Why This Overstock Analyst Is Bullish

Overstock.com Inc (NASDAQ: OSTK) is showing revenue growth acceleration and gaining market share due to both external and internal factors, according to Needham.

The Overstock Analyst: Rick Patel initiated coverage of Overstock with a Buy rating and $96 price target. 

The Overstock Takeaways: While the shift toward e-commerce has accelerated, the home category is being driven by consumer nesting, which should continue, Patel said in a Monday initiation note.

The analyst named seven reasons for the Buy rating:

  • Macro data and company commentary suggest continued strength for the home category in the near-term. 
  • Needham’s proprietary consumer survey says the strength of the home category is set to continue this fall.
  • The total addressable market for home products is growing, with digital players gaining share at the expense of traditional retail.
  • Overstock has a more focused strategy that should benefit the company via self-help initiatives. 
  • Overstock’s new GSA contract with the government expands its market further through B2B commerce.
  • Strong growth should drive expense leverage, leading to higher adjusted EBITDA.
  • The company’s non-core businesses, tZERO and Medici Ventures, create optionality through blockchain technologies.

OSTK Price Action: Shares of Overstock were trading 14.79% higher to $74.78 at last check Monday. 

Latest Ratings for OSTK

DateFirmActionFromTo
Sep 2020Credit SuisseInitiates Coverage OnOutperform
Sep 2020WedbushInitiates Coverage OnOutperform
Sep 2020NeedhamInitiates Coverage OnBuy

View More Analyst Ratings for OSTK
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