Maxim Pounds the Table on Overstock (OSTK) Stock
Overstock (OSTK) has taken many shapes and forms over the course of its life as a publicly traded company. Most recently, it has turned into a blockchain company with all sorts of investments across the entire blockchain universe. Naturally, as bitcoin prices have fallen and blockchain hype has died, OSTK stock has dropped. In January, this was an $85 stock. Today, it trades around $25.
However, Maxim analyst Allen Klee remains bullish on the stock, reiterating a Buy rating and price target of $75, which represents a potential upside of 180% from where the stock is currently trading. (To watch Klee’s track record, click here)
Klee wrote, “In our view, there is a disconnect between OSTK’s stock price and the large opportunities in its blockchain investments, particularly tZERO. tZERO has a first-mover advantage through its ATS, SEC approval to trade initial coin offerings (ICOs) and partnership with BOX Digital Markets – private securities represent a $5+ trillion annual market. We expect a pickup in demand as SEC requires ICOs to be deemed securities and trade on a registered exchange or ATS, and tZERO launching ability to trade Reg S securities in 2H18 and Reg D 1H19.”
“A unique technology for digital locate provides better transparency and cost savings for shorting stocks, which we peg at a $9 billion annual total addressable market. Other blockchain investments with large potential include the Bitsy digital wallet that was just beta launched, Voatz, which has done pilot election voting, and land governance in African countries,” the analyst added.
Bottom line: “We expect improving retail segment results and/or sale and recognition of value of blockchain investments will be catalysts for the stock.”
Aside from this rating, OSTK has only received one other analyst rating in the last three months. Five-star D.A. Davidson analyst Tom Forte rates the stock a Buy, with a price target of $112, which implies a huge upside of 318% from current levels.