• Mon. Sep 28th, 2020

Dimancherouge

Technology

Overstock.com Gets Buy Rating as Needham Initiates Coverage

Overstock.com has benefited from a more focused strategy and a “secular shift” toward e-commerce, according to a Needham analyst, who initiated coverage on shares of the online retailer with a buy rating and a $96 price target.

Shares of the Midvale, Utah company were rising 11.1% to $72.40.

Analyst Rick Patel said in a note to clients that Overstock has been a “significant outperformer” year to date and he sees the company “as a compelling growth story with solid momentum.”

“The ongoing secular share shift towards digital commerce has accelerated this year, and the home category is benefiting from consumer nesting,” Patel said in a note to clients. “We anticipate this will continue.”

Concurrently, Patel added, “Overstock has benefited from a moreĀ focused strategy and self-help initiatives across mobile, pricing, marketing and customer service.”

Patel said he also expected Overstock to benefit from shrinking competition from traditional brick and mortar retailers. Falling foot traffic has been an ongoing headwind for many years and Covid-19 has exerted significantly more pressure.

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