Temple & Webster (ASX:TPW) share price hits record high after broker lifts its price target

The Temple & Webster Group Ltd (ASX:TPW) share price hit a record high on Thursday after Goldman Sachs lifted its price target…
The post Temple & Webster (ASX:TPW) share price hits record high after broker lifts its price target appeared first on Motley Fool Australia. –

woman holding flagpole on top of peak against backdrop of city and stock chart

The Temple & Webster Group Ltd (ASX: TPW) share price has been on form again on Thursday.

In morning trade the online furniture and homewares retailer’s shares stormed almost 5% higher to a record high of $10.35.

Why did the Temple & Webster share price storm higher?

As well as getting a lift this week from news that fellow online retailer Ltd (ASX: KGN) continued its meteoric sales growth in August, Temple & Webster’s shares were given a boost today from a broker note out of Goldman Sachs.

According to the note, the broker has retained its buy rating and lifted its price target to $11.50 from $9.70.

This price target implies potential upside of over 16% from its last close price.

Why is Goldman Sachs bullish on the company?

Goldman Sachs has been looking at the ecommerce market and believes both Temple & Webster and Redbubble Ltd (ASX: RBL) are well-positioned for growth in the coming years.

Its analysts commented that both companies: “have some similar characteristics: strong market positions in their respective verticals, negative working capital beneficiaries, limited (TPW) to no (RBL) inventory risk, well-established supply and logistic networks accommodate the recent rapid acceleration in online commerce and large potential addressable markets.”

The broker believes that both companies will benefit for three key reasons.

It explained: “We believe both business will continue to benefit from structural tailwinds: (1) migration to online commerce, a trend we believe will continue unabated even as economies return to “normal” post-Covid, (2) strong market positions in their categories based on a multi-year lead they have against competitors that should be sustained provided they keep reinvesting in their business, and (3) growth to be materially greater than Australia GDP over our forecast period which should provide ongoing operating leverage.”

“These underpin the retention of our Buy rating on both stocks, noting we believe the potential long-term upside for RBL could be substantially greater if its execution becomes more consistent,” it concluded.

Goldman Sachs has a buy rating and $5.20 price target on Redbubble’s shares.

These stocks could rocket in a Post-COVID world (FREE STOCK REPORT)

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.*

In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.

Find out the names of our 3 Post COVID Stocks – For FREE!

*Returns as of 6/8/2020

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. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Temple & Webster (ASX:TPW) share price hits record high after broker lifts its price target appeared first on 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!