Skip to main content (OSTK) shares rose Tuesday as a DA Davidson analyst reiterated his buy rating and Maxim Group resumed coverage following an  upbeat letter to shareholders from the company's CEO, Patrick Byrne.

DA Davidson's Tom Forte reiterated a $48 price target and said is well positioned in its blockchain investments and seeing "improving trends for its legacy retail business." Maxim resumed coverage with a $34 price target.

Shares ended the day up 54 cents, or 3.1%, to $17.76.

Byrne has been pivoting the online retailer to blockchain financial services because of higher growth potential.

In Monday's letter Byrne raised full-year EBITDA estimates to $17.5 million and said better-than-expected financial results mean the company's retail business "should generate enough cash to substantially cover Blockchain's operating cash burn."

Overstock is developing security tokens through its tZERO business and digital ledgers through its Medici Ventures.