Overstock may soar if sells e-commerce, focuses on bitcoin blockchain

An employee scans an order in the shipping area at the Overstock.com distribution center in Salt Lake City, Utah.

Shares of Overstock.com could soar more than 60 percent, according to the primary Wall Street analyst covering the e-commerce company.

D.A. Davidson analyst Tom Forte is the only analyst listed on FactSet covering the stock, which has topped $1 billion in market value only in the last few weeks. Forte said in a Thursday note that after Overstock indicated in an earnings call it could sell its home e-commerce business, he is raising his target price on the stock to $85 from $57 a share.

“We now see the possibility of unlocking value in its two most significant assets — its home e-commerce effort and Medici Ventures (portfolio of nine companies that, to varying degrees, leverage the blockchain),” Forte said. He has a buy rating on the stock and said the market still doesn’t fully appreciate the value of Medici Ventures, the blockchain-focused division Overstock launched in 2014.

Blockchain is the technology of bitcoin and other digital currencies that have caught Wall Street’s attention this year. Independent investor and longtime short seller Marc Cohodes cited Overstock’s work in blockchain when he predicted in October that shares can reach $100…

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