Insights

Is the Temple & Webster (ASX:TPW) share price a bargain buy?

The Temple & Webster Group Ltd (ASX:TPW) share price has fallen 30% from its high. Is this a buying opportunity for investors?
The post Is the Temple & Webster (ASX:TPW) share price a bargain buy? appeared first on The Motley Fool Australia. –

wondering about asx shares represented by woman surrounded by question marks

The Temple & Webster Group Ltd (ASX: TPW) share price has been a poor performer in recent months and particularly last week.

During the five days, the online furniture and homewares retailer’s shares tumbled 12%.

And while the Temple & Webster share price is pushing higher today, it is still down 31% from its 52-week high.

Why did the Temple & Webster share price crash lower?

Investors were selling the company’s shares last week after the release of its third quarter update

Although Temple & Webster is still performing positively and growing its sales strongly, it warned that it would now be focusing on growing its market share at the expense of margins.

This includes increasing its marketing spend to build strong brand awareness and achieve a national brand status and using “tactical” pricing and promotions to increase conversion.

Temple & Webster’s CEO & Co-Founder, Mark Coulter, explained: “You only need to look at the US to see how the e-commerce market is playing out, and why we remain bullish about the shift from offline to online. We are at the start of this once in a generation shift, and now is the time to put our foot down to secure market leadership and ensure we are the brand for the next generation of furniture shopper.”

Is this a buying opportunity for investors?

According to a note out of Bell Potter, its analysts have retained their hold rating and put an $11.30 price target on its shares.

Based on the latest Temple & Webster share price, this implies potential upside of 16.5%. So while the broker only rates its shares as a hold, the returns on offer are still above-average.

Elsewhere, analysts at Morgan Stanley are a lot more positive on the Temple & Webster share price.

According to a note from last week, the broker has retained its overweight rating and lifted its price target to $15.00. Morgan Stanley believes its reinvestment plan makes strategic sense and expects it to widen its moat.

Its price target implies potential upside of greater than 50% over the next 12 months.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

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 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.

The post Is the Temple & Webster (ASX:TPW) share price a bargain buy? appeared first on The Motley Fool Australia.

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!