The Redbubble Ltd (ASX: RBL) share price has seen better days than today. At the time of writing, the global online marketplace is in the red by 4.29%, at $4.355 per share.
However, the Redbubble share price has surged approximately 15% in value over the past 9 trading days. That's rather impressive considering many investors would be stoked with a 15% return over the course of a year.
Additionally, shareholders have experienced a strong bounceback from the $3.19 price witnessed in August, rallying 37% since then.
This poses the question: is now the time to buy Redbubble shares? Let's see what brokers and fund managers think of the opportunity.
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Is Redbubble a buy on the ASX?
Despite being included in the S&P/ASX 200 Index (ASX: XJO) back in April, the Redbubble share price suffered a swift fall soon after. This was instigated by a trading update from the company pointing out an increase in investments to drive its top-line growth.
However, investors seem to have had a change of heart following the release of the company's full-year results for FY21. Some notable items in its financials for the period included marketplace revenue increasing 58% to $553 million and earnings before interest, tax, depreciation, and amortisation (EBITDA) skyrocketing 930% to $53 million.
Since reporting these numbers, some brokers and fund managers have shared bullish perspectives on the eCommerce player.
Firstly, leading broker Morgans considers Redbubble a serious ASX opportunity. The broker currently has a buy on the company with a price target of $4.83. Importantly, it sees a lot of growth potential ahead for Redbubble.
For reference, the company is aiming to reach $1.25 billion per year in marketplace revenue in the next few years. This would represent an increase of 126% on its latest full-year revenue. If achieved, that would certainly be a significant level of growth.
Fund manager thoughts
Meanwhile, as we recently covered, EGP Capital is a big fan of Redbubble. At the end of August, the company was its fourth-largest holding in the Concentrated Value Fund.
The fund's chief investment officer Tony Hansen spoke highly of Redbubble's management and is optimistic for the company's medium-term prospects.
I remain very positive about the medium-term prospects of RBL, now that the marketplace has reached scale, the key decisions are around how to deploy cashflows in search of business optimisation. Each new time I hear CEO Mike Ilczynski discuss his strategy, I am more convinced he has a very clear vision for how best to position the business.
Additionally, Hansen notes that ASX-listed Redbubble could be enticing to US-based Etsy Inc (NASDAQ: ETSY) as a potential acquisition candidate.
Redbubble currently trades on a price-to-earnings (P/E) ratio of 38.61.
