The Goodman Group (ASX: GMG) share price is edging higher on Friday.
In afternoon trade, the commercial property company's shares are up slightly to $22.70.
This means the Goodman share price is now up 17% since the start of the year.
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Why is the Goodman share price outperforming in 2021?
Investors have been bidding the Goodman share price higher this year on the belief that it would deliver a strong result in FY 2021.
This turned out to be accurate, with the company releasing a result ahead of the market's expectations this week.
In case you missed it, Goodman reported a 15% increase in operating profit to $1.22 billion and operating earnings per share (EPS) of 65.5 cents.
This was driven by a 12% increase in total assets under management (AUM) to $57.9 billion, a portfolio occupancy rate of 98.1%, and like-for-like net property income growth of 3.2%.
One disappointment, though, was that its guidance for FY 2022 was below the market's expectations. However, it is worth noting that Goodman has a track record of under promising and over delivering.
Can its shares go even higher?
The good news is that the team at Citi believe the Goodman share price is still good value at the current level.
This morning the broker retained its buy rating and $26.00 price target on the company's shares.
Based on the current Goodman share price, this implies potential upside of 14.5% over the next 12 months before dividends.
Citi said: "GMG's FY21 EPS was +2% above guidance and +1%/+0.5% above consensus/Citi, with the beat vs our estimate driven by higher investment income and lower interest expense/tax. FY22 EPS guidance was introduced at 10% growth or 72.2c, -2% below consensus and -3.5% below our prior estimate. However, we see upside to guidance and the share price, and re-iterate our Buy rating."
