Analysts’ Top Services Picks: OSTK, BWLD

By Ryan Adsit

There’s a lot to be optimistic about in the Services sector as 2 analysts just weighed in on Overstockcom (NASDAQ: OSTK) and Buffalo Wild Wings (NASDAQ: BWLD) with bullish sentiments.

Overstockcom (NASDAQ: OSTK)

In a report released today, Tom Forte from Maxim Group reiterated a Buy rating on Overstockcom (NASDAQ: OSTK), with a price target of $25. The company’s shares closed yesterday at $14.55.

Forte commented:

“On Thursday, we met with members of senior management in New York.”

According to TipRanks.com, Forte is ranked 0 out of 5 stars with an average return of -8.2% and a 35.3% success rate. Forte covers the Services sector, focusing on stocks such as Burberry Group, Nordstrom Inc, and Wayfair Inc.

Overstockcom has an analyst consensus of Moderate Buy, with a price target consensus of $25.

Buffalo Wild Wings (NASDAQ: BWLD)

In a report released today, Stephen Anderson from Maxim Group reiterated a Buy rating on Buffalo Wild Wings (NASDAQ: BWLD), with a price target of $180. The company’s shares closed yesterday at $153.85.

Anderson wrote:

“We upgrade shares of Buffalo Wild Wings (BWLD) to Buy (from Hold) and raise our price target to $180 (from $175) following the recent pullback in the share price. Although activist investor Marcato Capital Management increased its stake in BWLD, we do not believe his direct involvement is necessary for BWLD to succeed. We believe there is particular opportunity in digitally-driven sales, from which we estimate potential EPS upside of as much as $0.10 in 2018. Wing costs have risen 15% year-to-date, but we see a pullback in wing costs beginning in 2H17.”

According to TipRanks.com, Anderson is a 5-star analyst with an average return of 9.3% and a 67.1% success rate. Anderson covers the Services sector, focusing on stocks such as Popeyes Louisiana Kitchen, Brinker International, and Cheesecake Factory.

Currently, the analyst consensus on Buffalo Wild Wings is Hold and the average price target is $159.55, representing a 3.7% upside.

In a report issued on May 15, Deutsche Bank also upgraded the stock to Buy with a $180 price target.

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