Overstock.com (OSTK) Stock: $85 Price Target And Buy Rating

By Amit Chowdhry ● Mar 16, 2022
  • The shares of Overstock.com (NASDAQ: OSTK) have received an $85 price target from BofA Securities. These are the details.

The shares of Overstock.com (NASDAQ: OSTK) have received an $85 price target from BofA Securities. And BofA Securities analyst Curtis Nagle reiterated a Buy rating on the shares.

Nagle issued the rating after hosting investor meetings at the BofA Consumer Conference with CEO Jonathan Johnson and CFO Adrianne Lee. And the commentary indicates that management remains confident in its ability to continue to take share within online home furnishings, generate steady mid-single-digit (MSD) EBITDA margins, has opportunities for capital allocation this year (including $100 million buyback authorization), and sees the potential for significant valuation creation from its blockchain investment fund.

“Blockchain to emerge as x-factor in 2022. Management sees its externally managed blockchain investment fund ‘Medici fund’ as one of the most underappreciated aspects of the OTSK story,” wrote Nagle in a research note. “The recent hiring of David Goone as CEO of portfolio company tZero and investment by ICE is viewed by management as an accelerator of growth within digital exchanges and major competitive advantage. Pelion/Medici will hold a fund day on May 10th.”

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