Credit Suisse says the Kogan (ASX:KGN) share price has major upside

Is it time to buy this e-commerce share?

The Kogan.com Ltd (ASX: KGN) share price is rising on Friday.

In early afternoon trade, the e-commerce company's shares are up 1.5% to $10.91.

Though, this will be little consolation for some shareholders. The company's shares are still down 44% in 2021.

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Could the Kogan share price be in the buy zone?

One leading broker that appears to see a lot of value in the Kogan share price at the current level is Credit Suisse.

Its analysts have an outperform rating and a $14.06 price target on the company's shares.

Based on the current Kogan share price, this implies a potential upside of 29% over the next 12 months.

Why is the broker positive on Kogan?

Credit Suisse is positive on the Kogan share price due to the company's strong long term growth potential.

While the broker acknowledges that there is a lot of uncertainty in the near term, particularly given its elevated cost base which is squashing margins, its analysts feel Kogan's future remains very positive.

This is due to its strong market position, the shift to online retail, and the strong value proposition of its private-label offering.

When will we hear from Kogan next?

Given the uncertainty the company is facing, investors are no doubt keen for an update from Kogan.

The good news is that it won't be long until Kogan comes face to face with shareholders. While it has not yet announced the date, traditionally the company holds its annual general meeting in the middle of November.

While not obliged to do so, Kogan is likely to release an update on current trading when it holds this meeting, unless it releases a first-quarter update in the meantime.

Those updates could have a major influence on where the Kogan share price goes from here, so stay tuned.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended Kogan.com ltd. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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