Needham & Company Starts Overstock.com (OSTK) at Buy; 'Home is Where the Growth Is'

(Updated - September 14, 2020 5:20 AM EDT)

(updating comment)

Needham & Company analyst Rick Patel initiates coverage on Overstock.com (NASDAQ: OSTK) with a Buy rating and $96 price target.

The analyst comments "In our view, Overstock is benefiting from external and internal factors that are driving an acceleration in revenue growth and market share gains. The ongoing secular share shift towards digital commerce has accelerated this year, and the home category is benefiting from consumer nesting; we anticipate this will continue. Concurrently, Overstock has benefited from a more focused strategy and self-help initiatives across mobile, pricing, marketing and customer service. OSTK’s TAM is also expanding through a new B2B partnership with the GSA. In our view, higher revenue should leverage expenses, driving higher margins. Its non-core businesses also present optionality on the stock. Net, we see OSTK as a compelling growth story with solid momentum."

For an analyst ratings summary and ratings history on Overstock.com click here. For more ratings news on Overstock.com click here.

Shares of Overstock.com closed at $66.70 yesterday.

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