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. 

Latest Ratings for OSTK

Date Firm Action From To
Sep 2020 Credit Suisse Initiates Coverage On Outperform
Sep 2020 Wedbush Initiates Coverage On Outperform
Sep 2020 Needham Initiates Coverage On Buy

View More Analyst Ratings for OSTK

View the Latest Analyst Ratings

© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

(Excerpt) Read more Here | 2020-09-16 12:10:38
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