Overstock (NASDAQ:OSTK) stock is shooting higher on Monday following a bullish stance from one analyst.
Piper Sandler analyst Peter Keith is behind the positive news pushing OSTK stock higher today. The firm initiated coverage of the stock today with Keith giving it an “overweight” rating. To go along with this, the analyst set a price target of $140 per share for OSTK stock.
The Piper Sandler analyst taking such a strong stance on Overstock comes even after its already seen massive gains this year. That means that Keith is expecting even more growth. His price target implies that OSTK stock will climb 50% higher from its closing price of $93.36 on Friday.
Keith’s bullish take on Overstock stock is due to a variety of reasons. First off, he notes that the novel coronavirus is pushing more customers to its e-commerce offerings. Secondly, the analyst points to a shift in focus on home furnishings sales as a good move for the company. Finally, he expects CEO Jonathan Johnson to continue forward with positive changes for the company, reports The Motley Fool.
Overstock’s massive growth over the last several months could open the company up to even larger opportunities. InvestorPlace’s Larry Ramer believes that this could result in it becoming the first real competition for e-commerce giant Amazon (NASDAQ:AMZN). That belief is based on strong results in the second quarter of the year.
OSTK stock was up 25.7% as of Monday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.