The Redbubble Ltd (ASX: RBL) share price is hurtling higher again on Friday morning.
At the time of writing, the ecommerce company's shares are up a further 12% to $4.08.
This means the Redbubble share price is now up 33% in the space of two days.
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Why is the Redbubble share price rocketing higher?
Investors have been bidding up the Redbubble share price today after a leading broker upgraded its shares following the release of its full year results.
In respect to the result, for the 12 months ended 30 June, Redbubble reported a 58% increase in revenue to $553 million. This was driven by sustained strong customer demand despite traditional bricks and mortar retail reopening.
Things were even better on the bottom line, with Redbubble swinging from a loss of $9 million in FY 2020 to a profit of $31 million in FY 2021.
What about the broker note?
Despite the Redbubble share price rocketing higher on Thursday, the team at Morgans still saw enough value to upgrade its shares.
They have upgraded its shares to an add rating this morning, albeit with a slightly trimmed price target of $4.83.
Based on the current Redbubble share price, this price target implies potential upside of 18% over the next 12 months.
Morgans commented: "RBL's FY21 result came in slightly below forecasts (-0.8% Marketplace rev, -1% GP and -2% EBITDA). Given quarterly reporting, the quantum of the miss in the 4Q was a degree higher (-5% at MP Rev and GP lines, -40% EBITDA on small no.) The magnitude of near term downgrades we have put through our forecasts, the 39% intraday movement in the stock, and a likely near term retreat as short covering abides, has still not dissuaded us from moving to an Add rating. Whilst the worse may be yet to come, we are taking a longer term view, being believers in the earnings and growth potential of the RBL platform."
