WR Hambrecht Ups Overstock.com Targets
WR Hambrecht raised its target on Overstock.com (OSTK ).
Analyst William Lennan says assuming Thanksgiving gross merchandise sales represent about 4.5% of fourth-quarter gross merchandise sales as in 2002, then fourth-quarter gross merchandise sales would exceed $140 million, vs. his $105 million estimate. He believes non-books/music/video sales growth is outstanding; the company said jewelry and apparel categories are particularly strong.
Lennan says books/music/video category is immature relative to other business lines. He's keeping the 81 cents 2003 loss estimate, and the 6 cents 2003 loss estimate, citing danger in extrapolating 90 days' performance from four days' results; however, he says these estimates may prove conservative. Lennan reiterates his buy rating.