Eagers Automotive, Temple & Webster, Life360 lift as Morgan Stanley upgrade stocks
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The news: Morgan Stanley analysts have significantly upgraded its price target for vehicle retailer Eagers Automotive, furniture retailer Temple & Webster, and location-tracking app developer Life360.
The numbers: The biggest target price increase was for Temple & Webster which was moved from $18.50 to $28. Life360’s target price rose from $33.30 to $40 while Eagers’ increased from $17 to $20.
By 10:17am AEST Temple & Webster shares lifted 0.6% to $21.98, Life360 gained 0.3% to $32.15, and Eagers shares rose 1.3% to $17.10.
Morgan Stanley analysts described its 'overweight' position on the stocks as "high conviction calls" in a research note.
The context: The research note said the three stocks had the ability to deliver durable growth not factored into consensus, deliver earnings upgrade on consensus and outperform stocks on a lower forward multiple that lacked the capacity to generate high returns on incremental investment.
For Life360 this was underpinned by its ability to drive subscriptions through pet tracking, for Temple & Webster it was the expansion into the home improvement market and for Eagers it was the opportunity of non-negotiable fixed-prices for the sale of second-hand vehicles.
The source: Morgan Stanley research
