Morgan Stanley believes Temple & Webster Group can generate marketing leverage as the brand increases awareness, interest and retention.
The broker notes the group’s brand awareness rose to 55% from 30% around 12 months ago, driven by TV ad while web traffic rose three times over last year.
Overweight rating and $14 target retained. Industry view: In-Line.
Target price is $14.00.Current Price is $9.86. Difference: $4.14 – (brackets indicate current price is over target). If TPW meets the Morgan Stanley target it will return approximately 30% (excluding dividends, fees and charges – negative figures indicate an expected loss).