Overstock.com Inc (NASDAQ:OSTK) is set to capture gains in home goods as micro and macro level catalysts drive continued upside to revenue, according to Wedbush.
The Overstock Analyst: Ygal Arounian initiated coverage of Overstock with an Outperform rating and $92 price target.
The Overstock Takeaways: An accelerating shift from brick-and-mortar to e-commerce due to changing consumer behavioral habits was already forming prior to the COVID-19 pandemic, Arounian said in a Tuesday initiation note.
This shift will benefit Overstock in the home goods category, the analyst said.
He named the following reasons for Wedbush's bullishness on Overstock:
Overstock’s transition to a new leadership team has shown significantly improved results, greater focus and a better trajectory.
Fast growth and relative fragmentation of the online home furnishings and furniture market in the U.S. is presenting a meaningful opportunity for Overstock.
A significant opportunity exists for margin expansion in the home furnishings segment.
Overstock could double or even triple its active customer base over the next few years.
Overstock recently bagged a government service contract to make direct sales to five government agencies.
The company is well-positioned to capitalize on its substantial investment in blockchain technology.
OSTK Price Action: Shares of Overstock were trading 4.31% higher to $76.49 at last check Wednesday.
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