The TechnologyOne Ltd (ASX: TNE) share price is edging higher on Thursday.
In afternoon trade, the enterprise software company's shares are up 0.5% to $12.37.
This means the TechnologyOne share price is now up 21% over the last six months.
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Can the TechnologyOne share price keep rising?
The good news is that one leading broker believes there's room for the TechnologyOne share price to keep rising from here.
According to a note out of Bell Potter, its analysts have retained their buy rating and lifted their price target on the company's shares to $14.25.
This price target implies potential upside of approximately 15% for investors over the next 12 months.
What did the broker say?
Bell Potter remains confident in TechnologyOne's growth outlook. Particularly given the company's plan to increase prices in line with inflation.
The price rises being put through this half are greater than in the first half which will provide a further boost to both NRR and revenue in H2. Notably the majority of customer renewals – or anniversaries as the company calls them – fall in the second half so this will provide an even greater boost relative to the first half.
In light of this, the broker believes the company is well-placed to deliver on its guidance in FY 2022.
We continue to forecast strong revenue growth of 16% in FY22 and both the strong NRR in 1HFY22 and the even greater price rises being put through in 2HFY22 give us confidence this forecast will be achieved. We also continue to forecast PBT of $112.0m in FY22 which equates to growth of 14% and is therefore consistent with the guidance of 10-15% growth.
It is also worth noting that Bell Potter believes there "is potential for the company to lift this annual target to 15-20% at some stage in the next few years."
All in all, given this positive outlook, the broker sees plenty of value in the TechnologyOne share price at the current level and retains its buy rating.
