Temple & Webster Group Ltd (TPW.AU) surged 5.05% during intraday trading on Friday, following an upgrade by UBS from sell to neutral. The investment bank noted that the stock's earnings multiple had become more reasonable after a recent 32% selloff, which was triggered by a disappointing sales update.

UBS analysts attributed the slowdown in sales growth to broader softening in consumer demand rather than company-specific issues. They also revised their target price down by 16% to A$14.80, but the stock's current performance suggests market expectations are now more aligned with the revised outlook.