The Temple & Webster Group Ltd (ASX: TPW) share price has been a very strong performer on Tuesday.
In afternoon trade the online furniture and homewares retailer's shares are up over 10% to $10.12.
Despite this strong gain, the Temple & Webster share price is still trading 28% lower than its 52-week high of $14.05.
Why is the Temple & Webster share price surging higher?
There have been a couple of catalysts for the strong rise in the Temple & Webster share price today.
One has been a rebound in the tech sector after bond yields eased overnight in the United States. This has led to the S&P/ASX All Technology Index (ASX: XTX) rising a solid 2.3% this afternoon.
In addition to this, the Temple & Webster share price was given a boost this morning by a broker note out of Morgan Stanley.
According to the note, the broker has initiated coverage on the company's shares with an overweight rating and $14.00 price target.
Even after factoring in today's strong gain, this price target implies potential upside of almost 40% for its shares over the next 12 months.
Why is Morgan Stanley bullish?
The broker believes that recent weakness in the Temple & Webster share price has brought its shares down to an attractive level, creating a buying opportunity for investors.
Its analysts believe it is very early in the company's growth story and see significant room for growth in the future. Particularly given the low levels of online penetration in the sector compared to the United States and UK markets.
Morgan Stanley isn't alone with this bullish view. Goldman Sachs currently has a buy rating and $12.45 price target on its shares.
It is a fan for the same reason, noting that "we remain attracted to the structural tailwind of online commerce penetration and note that TPW has a leading position within its category which itself has a significant room for further online commerce growth."
This could potentially make it worth considering Temple & Webster with a long term view.
