Temple & Webster Group (ASX:TPW) has potential for a margin beat, but it may hinder revenue growth, making its fiscal year 2028 AU$1 billion revenue target "increasingly aspirational," Jefferies said in a Thursday note.
The company issued a trading update in May that reset expectations and signaled that it is moving away from a "growth-at-all-costs" strategy.
The debate is whether the company can maintain margins gains as consumer spending softens or if competitive pressures will force them back into discounting and margin sacrifice, the financial services firm said.
The company will release its fiscal year 2026 results on Aug. 19, forecasting revenue of between AU$665 million and AU$675 million, alongside earnings before interest, taxes, depreciation, and amortization of AU$20 million to AU$22 million.
Jefferies reaffirmed its buy rating and AU$8.95 price target on Temple & Webster Group.