First half revenue and earnings were slightly lower than Macquarie estimated. Still, the result is considered strong, with revenue benefiting from broader consumer trends and increasing online penetration.
The broker assesses a long-term opportunity driven by category expansion, customers moving online and investment. Revenue growth is expected to taper off as 2021 progresses although operating leverage continues to fund new initiatives.
Neutral maintained. Target rises to $10.90 from $10.60.
Target price is $10.90.Current Price is $10.53. Difference: $0.37 – (brackets indicate current price is over target). If TPW meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges – negative figures indicate an expected loss).