Overstock.com (OSTK.US), an online retailer, jumped more than 6% during today’s US session despite the broad-based risk-off mood on the markets. Needham initiated coverage of the company with a buy rating and $150 price target, adding the stock to the firm’s conviction list, which consists of companies that Needham’s analysts predict will outperform the broad market over the next 6 months. Analyst Anna Andreeva named Overstock.com in a research note as “one of the most interesting ideas in e-commerce”. She cited factors such as compelling valuation, elimination of EBITDA losses or low online penetration for the home category.
Overstock.com (OSTK.US) bounced off the 50-day moving average (green line) and moved higher today after upbeat coverage. The price has been moving in an upward trend in recent months (higher highs and higher lows) and on the daily chart one might also spot a wedge pattern. If the upward impulse continues, the upper limit of the pattern might turn out to be a major resistance for buyers. Source: xStation5
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