The Temple & Webster Group Ltd (ASX: TPW) share price finished the day around 5% higher to close the session at $13.46.
That marks off an impressive week for the online furniture retailer, whose share price is now approaching its 52-week closing high of $14.71.
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Why did the Temple & Webster share price gain ground today?
Temple & Webster shares charged higher today despite there being no market-sensitive information for the company.
However, Temple & Webster shares rallied 14% this past week, and have climbed from a previous low of $11.55 on 6 October, as investors bid the e-commerce player's share price back north.
The company did report stellar FY21 results back in August, where it recognised an 85% year on year increase in revenue to $326 million and a 140% jump in EBITDA over the year.
Investors were quick to jump on the company following its earnings release, however, the spark was short-lived, and its share price began to march southwards soon afterwards.
It wasn't until these past 2 weeks that investors have shown love for Temple & Webster once more – a trend that analysts at investment banking giant Morgan Stanley feel is certainly warranted.
The broker has a buy rating on the company's shares and believes it can continue growing revenues at a fast pace into the future.
Morgan Stanley believes this because of Temple's reinvestment program, the launch of mobile apps, and structural shifts in the way consumers and workers go about their habits.
It believes an annual revenue of $1 billion by FY25 for Temple & Webster is not an unreasonable expectation given these factors.
As such, it has a $16 price target on the Temple & Webster share price, implying a 19% upside potential from today's closing price.
It's also worth noting that there were strengths across the broad technology sector today, with the S&P/ASX All Technology Index (XTX) leading the benchmark indices with a return of 1.12% from the open.
Aside from these pointers, there appears to be nothing remarkable that resulted in a direct impact on the company's share price today.
About the Temple & Webster share price
The Temple & Webster share price has climbed 21% this year to date, after gaining a further 3% in the past month.
Despite this, it is 0.15% in the red over the past 12 months, well behind the benchmark S&P/ASX 200 Index (ASX: XJO)'s climb of around 18% in that time.
