The Collins Foods Ltd (ASX: CKF) share price has been a strong performer in 2021.
It hasn't exactly been a smooth ride, but the quick service restaurant operator's shares have thoroughly smashed the market during this year.
Since the start of the year, the Collins Foods share price is up over 31%. This is more than double the gain of the S&P/ASX 200 Index (ASX: XJO).
Can the Collins Foods share price keep climbing?
The good news is that one leading broker still believes the Collins Foods share price has further to run.
According to a note out of Canaccord Genuity, its analysts were pleased with the company's full year results in June.
In case you missed it, the KFC operator reported a 12.4% increase in revenue to $1.07 billion and an 18.2% lift in underlying net profit after tax to $56.9 million. This was driven largely by its KFC Australia business, which delivered same store sales growth of 12.9% during the 12 months.
In response to the result, the team at Canaccord Genuity retained their buy rating and lifted their price target to $13.35 price target.
Based on the latest Collins Foods share price of $12.55, this implies further upside of 6.5% over the next 12 months before dividends.
And with Canaccord Genuity forecasting fully franked dividends per share of 26 cents in FY 2022, the potential return on offer stretches to approximately 8.5%.
While the broker notes that Collins Foods will be cycling some very strong sales growth in FY 2022, it is still forecasting modest earnings and dividend growth for the year. This is largely due to the strength of its Australian KFC operations.
All in all, Canaccord Genuity appears to believe this makes its shares good value at the current level.
