The Kogan.com Ltd (ASX: KGN) share price put in a strong showing to end the week, charging 4.5% higher today to close at $3.71.
The broader market was also in the green as the S&P/ASX 200 Index (ASX: XJO) climbed 0.7% to finish at 6,894 points.
What's driving the Kogan share price higher?
There's been no news from Kogan, but it could be that positive sentiment towards fellow ASX retail share Temple & Webster Ltd (ASX: TPW) is spreading.
The Temple & Webster share price also felt the love today, capping off the week with a 4.9% gain to close at $5.84.
Temple & Webster hasn't made any recent announcements either. But it was the subject of a bullish broker note out of Goldman Sachs this morning.
The broker has initiated coverage on Temple & Webster shares, slapping on a buy rating with a 12-month price target of $7.55. This represents a potential upside of 29% compared to the current Temple & Webster share price.
Goldman expects the ASX retailer to grow as a structural winner in the shift to online. The broker pointed to Temple & Webster's wide range of products and price points, low-inventory business model, the early stages of e-commerce penetration, and a lack of significant competitive threat over the medium-term as reasons to be bullish.
In the same broker note, Goldman also initiated coverage on Adairs Ltd (ASX: ADH) shares with a buy rating and a 12-month price target of $3.05. This implies a potential upside of 47%.
Kogan's latest developments
Kogan last updated the market when it released its FY22 results. Revenue dropped 8% to $718 million as the company cycled COVID-accelerated growth in the prior year.
Meanwhile, adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) tumbled 69% to $18.9 million as the company continued to battle inventory woes and elevated operating costs.
Looking ahead, the company is expecting the continued expansion of Kogan Marketplace, including the launch of an advertising platform; growth in Mighty Ape; further growth in Kogan First subscribers; continued strong contribution from exclusive brands; and improved operating leverage.
Kogan share price snapshot
The Kogan share price has crumbled 57% this year, and it's down 65% over the last 12 months.
Kogan's co-founder and CFO David Shafer has seen this as a buying opportunity, recently picking up more shares.
On 30 August, he purchased 150,000 Kogan shares on the market at an average price of $3.38 per share for total consideration of around $500,000.