The Suncorp Group Ltd (ASX: SUN) share price has been on form in 2021.
Since the beginning of the year, the banking and insurance giant's shares have risen 28% to $12.59.
This means the Suncorp share price is now trading within sight of its 52-week high of $13.26.
Where next for the Suncorp share price?
The good news for shareholders is that one leading broker not only believes the Suncorp share price can go higher, but also that it can make a new 52-week high.
According to a recent note out of Goldman Sachs, its analysts have a buy rating and $13.74 price target on the company's shares.
Based on the current Suncorp share price, this suggests that there's still 9% upside over the next 12 months before dividends.
In addition, the broker is forecasting a 61 cents per share fully franked dividend in FY 2022. Combined, this brings the total potential return to just under 14%.
What did the broker say?
Goldman Sachs was pleased with Suncorp's performance in FY 2021 and notes that it delivered earnings ahead of expectations.
And while it acknowledges that the Suncorp share price has rallied hard this year, it still sees enough value to maintain a buy rating.
Goldman explained: "While it is now harder to argue that SUN is cheap, we have nonetheless maintained our Buy rating, where we see good momentum in the business, plus near-term earnings risks as skewed positively."
There are four reasons why it believes the risks are skewed to the upside.
They are: "1) provided pressure does not mount on the industry to return recent motor frequency benefits, SUN will almost certainly record gains in 1H22 (potential for c.5% upside in EPS), 2) SUN's recent reserve development remains well above its normalised 1.5% release assumption and noted relative comfort in the outlook (GSe 1.5% assumed, and a result closer to FY21 experience would equate to c.3% upside), 3) scope for further banking collective provision release (A$60m of A$155m COVID overlay released in FY21), and 4) into FY23 if we were to calibrate to the mid-point of SUN's insurance margin targets alongside the bank cost/income ratio target we would see c.10% upside."
