UBS believes it is too early to turn positive on the online retail sector as unit economics are generally worse now than before the pandemic and there is a tough macro outlook for discretionary expenditure. Moreover, supply chains remain challenging.
The broker envisages downside risk to medium-term earnings expectations for Temple & Webster and downgrades to Neutral from Buy. Target is reduced to $4.25 from $8.20.
Sector: Retailing.
Target price is $4.25.Current Price is $3.47. Difference: $0.78 – (brackets indicate current price is over target). If TPW meets the UBS target it will return approximately 18% (excluding dividends, fees and charges – negative figures indicate an expected loss).
