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.