Temple & Webster stock initiated with Buy rating at Goldman Sachs

Published 15/09/2025, 11:24
Temple & Webster stock initiated with Buy rating at Goldman Sachs

Investing.com - Goldman Sachs initiated coverage on Temple & Webster Group Ltd (ASX:TPW) with a Buy rating and a price target of AUD27.65 on Monday.

The investment bank cited three key pillars supporting its bullish thesis on the Australian online furniture retailer. Goldman Sachs expects e-commerce penetration in Temple & Webster’s category to continue growing, noting that trends in the US and UK markets provide confidence for this outlook.

Goldman Sachs highlighted the company’s focus on differentiated Private Label and Exclusive Products (PL/EP) as creating a competitive moat that will help drive market share and defend against heightened competition, particularly from Amazon.

The firm projects that deeper PL/EP offerings will drive delivered-margins expansion to 32.5% by fiscal year 2030. This margin improvement represents a key component of Goldman’s positive outlook for the company.

Despite Temple & Webster’s shares appreciating approximately 76% year-to-date, Goldman Sachs believes the stock remains attractive on a growth-adjusted basis, trading at 0.8x FY27E EV/EBITDA/EBITDA CAGR (FY25-28E) compared to the global scaled marketplaces median of 1.0x based on VA Consensus Data.

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