This is why Overstock shares is surging today

(SeekingAlpha) – There is a new leg to the rally for (NASDAQ:OSTK) after Piper Sandler calls the stock undervalued despite the massive +480% YTD runup.

“There are seismic forces at work that have dramatically improved the sales and profitability outlook for OSTK well into the future,” writes Piper analyst Peter Keith.

Keith points to the surge in home furnishing sales during the pandemic and expects a favorable backdrop for OSTK for another five years.

Piper starts off coverage with an Overweight rating and the price target of $140 reps upside potential of almost 40%. Shares of OSTK are up 11.40% in early trading to trade over $100 again.