The Harvey Norman Holdings Limited (ASX: HVN) share price has been a strong performer over the last 12 months.
Since this time in 2020, the retail giant's shares have rallied 22% higher.
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Can the Harvey Norman share price keep climbing?
The good news is that one leading broker still believes the Harvey Norman share price can go higher from here.
According to a note out of Citi, its analysts have put a buy rating and $6.00 price target on the retailer's shares.
Based on the current Harvey Norman share price of $5.21, this implies potential upside of 15% over the next 12 months.
And with the broker expecting a very generous dividend yield of 7% in FY 2022, this potential return stretches to 22%.
Citi's forecasts
Citi is forecasting a full year profit of $482 million in FY 2022, with earnings per share coming it at 39 cents. Based on this the Harvey Norman share price is trading at a little over 13x forward earnings.
From these earnings, the broker expects a sizeable 37 cents per share dividend to be paid to shareholders.
What did Citi say?
It commented: "Harvey Norman delivered FY21 underlying PBT (ex-revaluations and pre-AASB16) of $1,034 million, up 67% YoY, ~6% ahead of Citi estimates. Harvey Norman's underperformance in the July/August trading update is not representative of true underlying demand, in our view, given several distorting factors that skewed the result downward."
"Key fundamental macro pillars that have underpinned Harvey Norman's solid FY21 result remain despite lock down disruptions. Given the stock's relatively undemanding valuation, we maintain our Buy rating with our target price unchanged at $6.00 per share," it added.
