Can the Temple & Webster (ASX:TPW) share price hit $16?

This online retailer’s shares could be heading higher from here…
The post Can the Temple & Webster (ASX:TPW) share price hit $16? appeared first on The Motley Fool Australia. –

The Temple & Webster Group Ltd (ASX: TPW) share price has been a very strong performer over the last six months.

During this time, the online furniture and homewares retailer’s shares have gained an impressive 40%.

Where next for the Temple & Webster share price?

The good news is that one leading broker believes the Temple & Webster share price can keep on rising from here.

According to a note out of Morgan Stanley, its analysts were pleased with the company’s performance in FY 2021 and also the solid start it has made to the new financial year.

In case you missed it, Temple & Webster reported an 85% increase in revenue to $326.3 million and a 141% jump in EBITDA to $20.5 million in FY 2021. It also revealed revenue growth of 49% for the period 1 July to 27 August.

Driving this growth was the accelerating shift from offline to online, a thriving housing market, strong customer growth, and an increase in revenue per active customer.

In response to this update, Morgan Stanley put an overweight rating and $16.00 price target on its shares.

Based on the current Temple & Webster share price of $12.89, this implies potential upside of 24% over the next 12 months.

Why is Morgan Stanley bullish?

Morgan Stanley is bullish on Temple & Webster due to its belief that the company’s strong revenue growth will continue.

This is due partly to the company’s reinvestment program, the structural shift online, and the launch of mobile apps.

All in all, Morgan Stanley believes Temple & Webster is on track to triple its annual revenue to $1 billion in the next four years.

In light of this, the broker sees a lot of value in its shares at the current level and is recommending them as a buy.

The post Can the Temple & Webster (ASX:TPW) share price hit $16? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Temple & Webster right now?

Before you consider Temple & Webster, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Temple & Webster wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

3 excellent ASX share ideas for investors this week

2 fast-growing ASX shares named as buys

How have ASX retail shares performed during the August 2021 earnings season?

The Temple & Webster (ASX:TPW) share price is having a bad week but is up 3% today
2 leading e-commerce ASX shares that could be buys in September 2021

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Temple & Webster Group Ltd. The Motley Fool Australia has recommended Temple & Webster Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!