UPDATE: Wedbush Assumes Overstock.com (OSTK) at Outperform
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Wedbush analyst Michael Pachter assumes coverage on Overstock.com (NASDAQ: OSTK) with an Outperform rating and a price target of $95.00 (from $100).
The analyst commented, "We assume lead coverage of Overstock.com (OSTK) with an OUTPERFORM rating and a $95 price target. Over time, we think that Overstock is well positioned to grow its top line by double digits, and over the course of the next 24 months, we expect to see meaningful contribution from the planned expansion into Canada and from increased traction of sales to the General Services Administration (Federal) and to state and local governments. While the contribution from each of these is expected to be small, we think expansion into Canada could add 10% or more to already robust revenue growth, and think government sales could add another 5%. Our bias is that Overstock has significant upside from current levels and its stock will command a premium multiple when investors can better identify its retail progress. Our $95 price target is based on a 20x EV/EBITDA multiple on our 2023 adjusted EBITDA estimate of $184 million."
Shares of Overstock.com closed at $72.29 yesterday.
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