Shares of Temple & Webster Group Ltd (TPW.AU) are soaring 6.05% in pre-market trading on Friday, following a bullish analyst upgrade. The online furniture retailer's stock is gaining momentum after Bell Potter analyst Chami Ratnapala raised the recommendation from "hold" to "buy", citing easing valuations across Australia-listed consumer discretionaries.
Ratnapala maintained the A$28.00 target price for Temple & Webster, representing a significant upside from the previous closing price of A$23.79. The analyst expressed optimism about the company's prospects for the upcoming holiday trading season, pointing to supportive data from online peers and a relatively unchallenging prior-year comparison.
The upgrade comes after a recent pullback in Temple & Webster's shares, which appears to have created an attractive entry point for investors. As the e-commerce sector continues to evolve, Temple & Webster's position in the online furniture market seems to be gaining favor among analysts, potentially driving further investor interest in the stock.
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