Markets & Finance

Hambrecht Resumes Coverage of Overstock.com with 'Buy'


WR Hambrecht resumes coverage of Overstock.com (OSTK), putting the stock on its buy-analyst select list.

Analyst Bill Lennan thinks the issues at hand, including a disappointing earnings report, that are driving a recent sell-off in Overstock shares are either non-recurring or quite fixable. He says the stock price discounts some very positive trends that were obscured by the disappointing first quarter. He notes Overstock, which sells discount-priced designer goods over the Internet, continues to add customers, and entice existing customers to transact nearly 30% more frequently than they did a year earlier. He thinks this model works, and that patient investors may see 50% or more returns over the next 12 months.

Lennan sees 5 cents 2003 earnings per share (GAAP) on $167.8 million revenue, and 65 cents 2004 earnings per share on $240.9 million revenue. He set a $15 target.


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