WR Hambrecht Ups Overstock.com Targets

Analyst William Lennan cites a report from the online retailer that Thanksgiving sales more than doubled

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.

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