Avondale Upgrades Overstock.com to Market Outperform
Avondale upgraded online discount retailer Overstock.com (OSTK ) to market outperform from market perform.
Analyst Frank Gristina says Overstock.com will report third-quarter results on Oct. 21 and he sees a 20-cent loss per share. He was concerned that rising customer acquisition costs would bring consensus estimates down or cause Overstock.com to miss expectations.
But he notes his peers have since lowered estimates, bringing a 9-cent loss consensus to a 19-cent loss. Gristina believes management and consensus will raise revenue expectations after its third-quarter report, regardless of what happens with customer acquisition costs.
As a result of rising stockkeeping units and positive early feedback from sellers on Overstock.com's auction platform, he raises his $35 price target to $50.
To continue reading this article you must be a Bloomberg Professional Service Subscriber.
If you believe that you may have received this message in error please let us know.