Overstock.com initiated with a Neutral at BTIG

BTIG analyst Marvin Fong initiated coverage of Overstock.com with a Neutral rating and no price target. The company is at a “pivotal moment in its long history” as it has bet its future on taking on the Bed Bath & Beyond brand after buying the intellectual property out of bankruptcy in June, the analyst tells investors in a research note. The firm says the Bed Bath brand “comes with hard-to-ignore baggage” as it has experienced a multi-year period of decline that likely damaged brand value. BTIG says that while Overstock shares have some downside support given its strong balance sheet, it is concerned that customer acquisition will be slower than the company hopes, meaning its investment phase may last longer than the telegraphed timeframe of a few quarters.