The last 12 months have been disappointing for the tech sector as demonstrated by the S&P ASX All Technology index's modest gain of 2.6%. As a comparison, the S&P/ASX 200 Index (ASX: XJO) has gained 13.3% over the same period.
But one shining light in the sector has been the Altium Limited (ASX: ALU) share price.
Despite a pullback today, the electronic design software company's shares have gain 27% over the last 12 months. This is more than double the ASX 200's return.
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Where next for the Altium share price?
One leading broker has been running the rule over the Altium share price recently and has given its verdict.
According to a note out of Bell Potter, its analysts have put a hold rating and $45.00 price target on the company's shares.
Based on the current Altium share price of $43.17, this implies modest upside of just over 4% for investors over the next 12 months.
What did the broker say?
Bell Potter's analysts believe the Altium share price is about fair value at the current level based on their earnings forecasts. Though, they appear to suggest that there is upside risk from a better than expected performance in FY 2022.
The broker explained: "There is no change in our forecasts for Altium which we last updated in early November. We continue to forecast FY22 revenue and EBITDA of US$218m and US$80m which is at the top end or slightly higher than the guidance ranges of US$209-217m and US$72-80m."
"We also continue to see some prospect of an upgrade to the guidance at the release of the 1HFY22 result in February especially after the company said at the AGM that it is "confident that it is not likely to be at the low end of the guidance range.""
Looking further ahead, the broker believes Altium is well-positioned to continue its growth in the years that follow.
It added: "We then forecast continued strong revenue growth in the high teen percentages in FY23 and FY24 and then >20% EBITDA growth in each period on the back of anticipated further margin expansion."
However, as positive as this is, for the time being, the broker is staying firm with its hold rating on the Altium share price.
