Why the Temple and Webster (ASX:TPW) share price has jumped 18% in a month

The company’s shares are looking to finish the week on a high note.

| More on:
A man eases back onto his sofa, happy with the relaxed vibe from his furniture.

Image source: Getty Images

The Temple & Webster Group Ltd (ASX: TPW) share price is enjoying a strong month of gains, up 18%. This comes despite no market-sensitive news being released by the leading Australian online furniture and homewares retailer.

At the time of writing, Temple & Webster shares are fetching $12.93 apiece, up 1.81% for the day.

What’s driving Temple & Webster shares higher?

Investors appear to be upbeat about the company’s prospects after delivering a sound FY21 full-year result late last month. No doubt, this has led to the Temple & Webster share price to track higher.

According to its financial report, the company achieved revenue of $326.3 million, an 85% increase over the prior corresponding period. The robust performance was underpinned by growth in new and repeat customers and average order values.

While lockdowns persisted during FY20 and FY21, Temple & Webster accelerated its shift from offline to online. It launched mobile apps for iOS and Android to assist in the crossover.

The company logged a record number of customers for the period, up 62% year on year to 778,000.

Looking ahead, Temple & Webster revealed it is continuing to experience strong tailwinds for FY22. It noted that discretionary income has surged due to travel restrictions, leading to increased sales for its online business.

What do the brokers think?

Following the release of its FY21 results, several brokers rated the company with varying price points.

Macquarie raised its 12-month price target for Temple & Webster shares by 16% to $12.60. Credit Suisse also added to its initial outlook, lifting by 15% to $14.62.

However, the most bullish note came from Morgan Stanley, elevating its view on the company’s shares by 6.7% to $16.

About the Temple & Webster share price

Over the last 12 months, Temple & Webster shares have gained almost 60%, up 16% year to date. The company’s share price is nearing its all-time high of $14.05 achieved in October 2020.

Temple & Webster commands a market capitalisation of roughly $1.56 billion, with approximately 120 million shares on issue.

Should you invest $1,000 in Temple & Webster right now?

Before you consider Temple & Webster, you'll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Temple & Webster wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

Motley Fool contributor Aaron Teboneras 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.

More on Share Market News

A nervous ASX shares investor holding her hands to her face fearing a global recession may occur
Share Market News

5 things to watch on the ASX 200 on Thursday

It looks set to be a bad day for the ASX 200 on Thursday...

Read more »

Top 10 blank list on chalkboard
Share Market News

Here are the top 10 ASX shares today

Here are your top 10 biggest gainers in the ASX 200 on Wednesday.

Read more »

a man with a wry smile is behind ascending piles of coins as he places another coin on top of the tallest stack.
Share Market News

Can ASX 200 banks really see a 15% profit jump if the cash rate hits 1%?

These analysts are predicting big returns for banks in the rising interest rate environment.

Read more »

An office worker and his desk covered in yellow post-it notes
Share Market News

Here are the 3 most heavily traded ASX 200 shares on Wednesday

We take a look at the most traded ASX 200 shares by volume today.

Read more »

an oil refinery worker checks her laptop computer in front of a backdrop of oil refinery infrastructure. The woman has a serious look on her face.
Energy Shares

ASX 200 energy shares in focus amid frightening global supply crisis

A dearth of new fossil fuel projects in recent years has opened the door to today's global energy crisis.

Read more »

A happy man and woman sit having a coffee in a cafe while she holds up her phone to show him the ASX shares that did best today
Share Market News

ASX 200 midday update: BlueScope and Fortescue rise, Boral tumbles

The ASX 200 is having a strong day on Wednesday...

Read more »

A man standing in a red rock mine is covered by a sheet of gold blowing in the wind.

What’s sending the Northern Star share price higher today?

The gold miner reported it will return 20% to 30% of cash earnings as dividend payouts at its investor presentation,…

Read more »

Legendary share market investing expert and owner of Berkshire Hathaway Warren Buffett
Share Market News

Warren Buffett’s been bargain hunting following the stock market sell-off. Here’s the sector he’s been buying (and selling)

We check the investing guru's recent buys and sells.

Read more »