The Redbubble Ltd (ASX: RBL) share price has been a fantastic performer on Monday.
In late afternoon trade the ecommerce company's shares are up 11% to $4.56.
This latest gain means the Redbubble share price is now up a whopping 320% since the start of the year.
Why is the Redbubble share price up 320% in 2020?
Investors have been buying Redbubble shares this year after its sales growth accelerated materially during the second half of FY 2020.
This was of course driven by the shift to online shopping during the pandemic after retail stores were forced to close.
This strong second half led to Redbubble delivering a 43% increase in full year revenue to $368 million and a 141% increase in earnings before interest, tax, depreciation and amortisation (EBITDA) to $15.3 million.
What about the future?
The company's CEO, Martin Hosking, revealed that Redbubble's strong form continued early in FY 2021, with sales more than doubling during the month of July.
Pleasingly, he appears confident that its growth can continue. Mr Hosking explained: "RB Group's on-demand fulfilment model and differentiated consumer offerings provide us with distinctive advantages. The strong financial performance follows from these fundamentals."
"It has been pleasing to see the acceleration of existing trends in the last few months. 2021 represents a year of opportunity for the business. We are positioned to build on a decade of momentum and aggressively pursue the global opportunity presented by the shift to online activity and increasing adoption of ecommerce platforms," he added.
What else has been driving the Redbubble share price higher?
Also supporting the Redbubble share price was a broker note out of Goldman Sachs last month.
Its analysts put a buy rating and $5.20 price target on the company's shares, but suggested they could be worth upwards of $10.75 if it could grow its sales at a similarly strong rate to Temple & Webster Group Ltd (ASX: TPW).
Goldman Sachs explained: "TPW has a materially more expensive rating reflecting, in our view, its more consistent execution track record as discussed earlier. If RBL were to achieve a revenue CAGR over our 10yr DCF horizon similar to that of TPW (which is 21% vs. 11% for RBL), our DCF value for RBL would increase from A$4.75 to A$10.75 (assuming no change to our EBITDA margin forecasts)."
This certainly makes Redbubble one to watch in the coming years.
