Benzinga | Jul 8, 2021 12:04PM EDT

5 Reasons Why Needham Is Adding Overstock To Conviction List

Overstock.com Inc (NASDAQ:OSTK) is among the "more interesting ideas" in e-commerce and has a compelling valuation, according to Needham.

The Overstock.com Analyst: Anna Andreeva initiated coverage of Overstock.com with a Buy rating and a price target of $150.

The Overstock.com Thesis: With 74% sales growth in 2020, the company is one of the "COVID winners," Andreeva said in the initiation note.

The analyst mentioned 5 reasons for recommending Overstock.com:

* The company is "benefiting from favorable tailwinds in the Home & Furnishings space, aided by a population migration from high-tax states into lower-cost parts of the country, as well as rationalization across brick & mortar players

* New key performance indicators point towards a turnaround being "in high gear."

* Improved consistency is being driven by "early innings of self-help initiatives."

* The close of blockchain fund transaction with Pelion Venture Partners "frees up management time while also eliminating a $35M EBITDA drag."

* Although the stock has outperformed, it remains inexpensive.

OSTK Price Action: Shares of Overstock.com had risen by 6.08% to $91.22 at the time of publication Thursday.