Investing.com -- Overstock.com (NASDAQ:OSTK) jumped 10% on Monday after getting a boost from Needham.
The firm initiated coverage with a buy rating, saying the online retailer is benefiting from Americans' new nesting habits.
"Overstock is benefiting from external and internal factors that are driving an acceleration in revenue growth and market share gains," Seeking Alpha reported Needham as saying. "The ongoing secular share shift towards digital commerce has accelerated this year, and the home category is benefiting from consumer nesting; we anticipate this will continue."
The total addressable market for home products is growing, and strength will continue into the fall, the firm said, giving the stock a price target of $96.
Overstock has three buys, one hold and no sells, with an average price target of $104.25. They are currently trading around $72.
The stock is down 42% from a record high in August, tracking a sell-off in stay-at-home companies and a neutral rating from Bank of America (NYSE:BAC) earlier this month.