On Friday, Overstock.com Inc. (NASDAQ: OSTK) stock was up 9% after analysts Peter Keith restated his “Overweight” rating with a price target of $140.
The online home-furnishings company saw a boom in its business during the pandemic, with its shares soaring 800%in the past year. However, Piper Sandler says that even with this massive rally, the stock is mispriced.
Keith said that the stock could return tremendous returns to investors in one or two years. Overstock is profitable and trades at 0.8X its 2021 sales forecast. Interestingly, investors will get its blockchain operations and contract to the General Services Administration for free. He thinks that the company’s tZero blockchain platform could be worth more than half a billion dollars. T Keith’s main focus is the GSA contract awarded last year, which means the company will provide business-to-business capabilities for office furniture and supplies for five federal agencies for three years.
Although the platform has been slow to take off as Overstock expected, Keith says it is due to the working from home dynamic. Overstock is a stock to keep an eye on.