BOXD - Boxed rips big gain after Wells Fargo says shares could triple

Wells Fargo started off coverage on Boxed ( NYSE: BOXD ) on Wednesday with an Overweight rating.

Analyst Brian Fitzgerald sees upside for BOXD with the company an emerging e-commerce enabler offering a combination of software and services to offline/omnichannel retailers seeking to compete more effectively with e-commerce pure plays.

"While we believe that the vast majority of U.S. consumers are reasonably well served by existing options for purchasing groceries and bulk consumables (online and offline), BOXD's niche in the B2C/B2B market could represent a multi- billion dollar revenue opportunity while its core business serves as a test-bed for BOXD's software/services offered to retailer partners."

The AEON partnership in Malaysia and Vietnam for BOXD is seen as early validation of the large opportunity for it to be an e-commerce enabler. Boxed ( BOXD ) is viewed as an attractive play on global offline/omnichannel retailers' efforts to leverage tech to drive growth and defend market share.

Wells Fargo's price target of $8 on BOXD is based partially on a 10X terminal EBITDA multiple. The price target implies nearly 400% upside for shares from Tuesday's closing price. BOXD shot up 15.35% premarket on Wednesday to $1.88 vs. the 52-week trading range of $1.28 to $17.05.

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