Temple & Webster Group Ltd (ASX: TPW) shares have been among the best-performing ASX retail stocks over the past 5 years.
For the year to date, Temple & Webster has soared 75%, significantly outperforming the S&P/ASX 200 Index (ASX: XJO), which has risen just 9% over the same period.
Temple & Webster is Australia's largest pure-play online furniture and homeware retailer.
The company operates a "drop-ship" model, where products are sent directly from suppliers to consumers. This means Temple & Webster does not take on any inventory risk.
Temple & Webster is known for its wide range of affordable products, including furniture, rugs, kitchenware, and renovation accessories.
It's no secret that Australians love to renovate.
Last year, KPMG reported that spending on renovations had boomed over the past five years. Between 2018-19 and 2023-2024, it climbed from 34% of total residential construction spend to 40% of the total.
Renovations in Australia hit a record high in 2025, with nearly $50 billion being spent on home improvements across the country. In fact, it has been reported that one in three households is renovating this year.
On this basis, it's understandable that Temple & Webster's products have become increasingly popular.
Given this trend, ASX investors may be wondering whether Temple & Webster shares are still a buy. Let's find out what one expert had to say.
Does Temple & Webster have further to run?
On 14 August, JP Morgan Chase & Co (NYSE: JPM) released a new research note following Temple & Webster's FY25 result.
The investment bank said Temple & Webster's FY26 trading update came in better than expected, with the company reporting 26% year-over-year growth in the first few weeks of trade.
JP Morgan said this was consistent with other retailers in its coverage universe, such as fellow ASX furniture Nick Scali Ltd (ASX: NCK).
JP Morgan set a price target of $26.10 on Temple & Webster shares.
After peaking at $29.06 on 14 August, Temple & Webster shares have declined around 20%. They are currently changing hands for $22.90.
According to JP Morgan's price target, they could rise 14% from here.
The investment bank said:
In the near-term, we expect TPW will deliver strong top-line growth as market penetration improves, supported by a structural shift to e-Commerce furniture/ homewares sales, with longer-term value as scale drives material operating leverage.
What are other experts saying?
It seems that JP Morgan isn't the only expert who has set a price target well above Temple & Webster's current share price.
Macquarie has placed a target price of $31.30 on the ASX furniture retailer, suggesting even greater upside from here.
