Australia's Temple & Webster jumps after brokerages flag improving sales trends

By Reuters News

** Shares of Temple & Webster TPW.AX rise as much as 31.7% to A$5.70, their highest level since August 12

** Jefferies says the AGM update eased concerns of a further deterioration in trading, with sales trends improving materially for FY27 YTD

** Brokerage estimates sales trends improved to a 4% decline from a 13% decline previously for two months since August 18, while contribution margin growth strengthened to 16% from 10%

** Co expects revenue growth to resume from late February 2027 and has reaffirmed FY27 EBITDA guidance

** Citi says revenue momentum has improved materially since August and early results from branding, private-label and AI initiatives suggest growth can recover without sacrificing margins

** Jefferies rates the stock "buy" with an unchanged A$5.25 target price, while Citi rates it "neutral" and maintains A$4.35 target price

** YTD, stock down 61.5%, including the session's moves

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