The Woolworths Group Ltd (ASX: WOW) share price is currently having a subdued finish to the week.
In morning trade, the retail giant's shares are trading flat at $35.76.
Where next for the Woolworths share price?
One leading broker that believes the Woolworths share price could be heading higher from here is Citi.
According to a recent note, the broker has a buy rating and $40.30 price target on the retailer's shares.
Based on the current Woolworths share price, this implies potential upside of almost 13% over the next 12 months.
And with Citi forecasting a fully franked 2.7% dividend yield in FY 2022 and then 3% in FY 2023, the total potential return on offer over the next 12 months is over 15%.
What did the broker say?
Citi was pleased with Woolworths' performance during the first half, noting that its earnings were in line with expectations.
It commented: "Woolworths reported 1H22 EBIT of $1,382 million, consistent with guidance and inline with Citi and Visible Alpha consensus. Momentum in Australian Food improved following the mid-December trading update with EBIT at the top end of guidance and total sales growth of 3.6% in December."
In addition to this, its analysts have named three reasons to be positive on the company's outlook.
The broker explained: "We see an improving outlook given 1) eased restrictions and declining cases enabling a reduction in COVID costs and better operational efficiency; 2) food inflation lifting with shelf prices up ~2-3% in 2H22e to date; and 3) margin benefits as some online customers return to stores. We make small upward revisions to EBIT of ~1%."
All in all, this could make the Woolworths share price one to consider if you're looking for blue chip options this month.
