The Temple & Webster Group Ltd (ASX: TPW) share price has been a strong performer over the last few weeks.
Since this time last month, the online furniture and homewares retailer’s shares have stormed 17% higher.
This compares to a 1.3% gain by the S&P/ASX 200 Index (ASX: XJO) over the same period.
Why is the Temple & Webster share price on fire?
Investors have been bidding the Temple & Webster share price higher this month following the release of its full year results at the end of July.
For the 12 months ended 30 June, Temple & Webster delivered an 85% increase in revenue to $326.3 million and a 141% jump in EBITDA to $20.5 million.
A key driver of its growth in FY 2021 was another strong increase in customer numbers. At the end of the period, Temple & Webster’s active customers were up 62% year on year to 778,000. This means the company added 100,000 new active customers in the second half of the financial year.
Positively, its strong form has continued early in the new financial year, with revenue increasing 39% over the prior corresponding period between 1 July to 24 July.
Can its shares go higher?
The good news is that the team at Morgan Stanley believe Temple & Webster’s shares can still climb higher from here.
In response to its full year results, the broker retained its overweight rating and lifted its price target on Temple & Webster’s shares to $16.00.
Based on the latest Temple & Webster share price of $13.60, this represents potential upside of almost 18% over the next 12 months.
Its analysts believe that Temple & Webster can grow its revenue by ~30% per annum in the coming years, putting it on course to hit $1 billion in revenue by FY 2026.
The post Top broker names Temple & Webster (ASX:TPW) share price as a buy appeared first on The Motley Fool Australia.
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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.
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