The Goodman Group (ASX: GMG) share price was a comparatively positive performer on Tuesday.
The integrated property company's shares ended the day a fraction higher at $23.89.
This compares to a 0.7% decline by the S&P/ASX 200 Index (ASX: XJO).
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Where next for the Goodman share price?
Following today's performance, the Goodman share price is up 23% in 2021. While this is more than double the return of the ASX 200, a number of leading brokers believe it can keep rising.
One of those is Citi. A note this month reveals that its analysts have retained their buy rating and lifted their price target on the company's shares to $27.50.
Based on the current Goodman share price, this implies potential upside of over 15% for investors over the next 12 months. The broker is also forecasting a 1.3% dividend yield at current prices.
Why is Citi bullish?
Citi was impressed with Goodman's performance during the first quarter of FY 2022. It was also pleased to see management upgrade its full year guidance to at least 15% earnings per share growth.
However, the broker feels Goodman is being conservative with this guidance and is tipping the company to outperform it.
In addition, Citi notes that the Goodman share price is trading on lower multiples than some of its peer despite its stronger growth.
The broker commented: "GMG (Buy-rated) has today upgraded FY22 EPS guidance by 5% and now expects Operating EPS growth to be "in excess of 15%" or an implied EPS of >75.4c (c. 1% ahead of Citi's ingoing estimate of 74.8c and 1.5% ahead of Visible Alpha consensus 74.4c)."
"We believe the upgrade was driven by a mix of factors. Our EPS estimates rise 3% in FY22 and 5- 6% thereafter, with our TP rising ~6% to $27.50. We continue to see upside to FY22 guidance and now forecast FY22 EPS of 76.9c (+17% growth), 2% ahead of guidance. Importantly, our 3 year EPS CAGR lifts 200bps to ~16%, reflecting higher asset values, and development activity. We retain our Buy call with GMG now trading at ~30x FY22E PE, -3% to -25% below global peers, despite higher growth."
