Jefferies Cuts Price Target for Temple & Webster While Maintaining Buy Rating
Jefferies lowers Temple & Webster price target, keeps buy rating
Investing Australia
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Jefferies has reduced its price target for Temple & Webster Group, an Australian online homeware retailer, from A$14.50 to A$8.95, while keeping a buy rating. The brokerage also lowered revenue estimates for the company for the fiscal years 2026 to 2028, citing severe consumer stress and low confidence in the market.
- 01Jefferies lowers Temple & Webster's price target to A$8.95 from A$14.50.
- 02The brokerage maintains a buy rating on the stock despite the price target cut.
- 03Revenue estimates for fiscal years 2026, 2027, and 2028 have been reduced by 6%, 15%, and 18%, respectively.
- 04Temple & Webster forecasts FY 2026 revenue between A$665 million and A$675 million, below market expectations.
- 05The company is adjusting its strategy in response to significant consumer stress.
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Jefferies has revised its price target for Temple & Webster Group (ASX:TPW), an online homeware retailer based in Australia, from A$14.50 to A$8.95 while maintaining a buy rating on the stock. The brokerage has also lowered its revenue forecasts for the company by 6%, 15%, and 18% for the fiscal years 2026, 2027, and 2028, respectively. Temple & Webster has projected its fiscal year 2026 revenue to be between A$665 million and A$675 million (approximately $482.79 million to $490.05 million USD), representing a 12% increase from the previous year, but falling short of the consensus estimate of A$714.8 million. Jefferies highlighted that despite Temple & Webster's discount model, the recent trading update reflects severe consumer stress and historically low confidence levels. The brokerage noted that the company's management is preparing for a challenging year ahead by making adjustments to its margins.
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The reduction in price target and revenue estimates could affect investor confidence and stock performance for Temple & Webster, potentially impacting its market position in the homeware sector.
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