Bank of America Merrill Lynch Underweight On Overstock.com

Bank of America Merrill Lynch is out with a research report on Overstock.com OSTK and it has an Underweight rating and a $12 price target, down from $14 after it reported earnings. In a note to clients, Bank of America Merrill Lynch writes, "OSTK reported rev of $257mn (2% y/y growth), missing our estimate of $268mn. Low growth can be attributed to decreasing unique customers (down 3% y/y) and decreasing new customers (down 9% y/y). Gross margins of 17% (down 110bps y/y) also came in short of our estimate of 19% due to discounting that did not produce the expected sales growth. EBITDA loss of $2.2mn was well below Street expected gain of $786k." Shares of OSTK lost $1.79 yesterday to close at $13.14.