Goodman’s shares have been on form again this year. Is there more to come?
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The Goodman Group (ASX: GMG) share price has been on form again in 2021.
Since the start of the year, the leading integrated commercial and industrial property company’s shares have risen 17%.
This means the Goodman share price is now up 24% over the last 12 months.
What is Goodman?
Goodman owns, develops, and manages industrial real estate globally. Among its portfolio are warehouses, large scale logistics facilities, data centres, and business and office parks. At the last count, Goodman had $57.9 billion of total assets under management globally, 363 properties under management, and over 1,600 customers.
Demand has been strong for its properties over the last decade and this continued in FY 2021. This is thanks to its focus on investing in and developing high quality industrial properties in strategic locations, close to large urban populations and in and around major gateway cities globally. Management notes that this is where demand is strong and transformational changes are driving significant opportunities.
As a result of this strong demand, Goodman recently reported a 15% increase in operating profit to $1.22 billion for FY 2021.
Positively, it is expecting its strong form to continue and is forecasting 10% earnings per share growth in FY 2022.
Can the Goodman share price go higher?
According to a note out of Citi, it has a buy rating and $26.00 price target on the company’s shares. Based on the current Goodman share price, this implies potential upside of 15% over the next 12 months.
Citi commented: “GMG’s FY21 EPS was +2% above guidance and +1%/+0.5% above consensus/Citi, with the beat vs our estimate driven by higher investment income and lower interest expense/tax. FY22 EPS guidance was introduced at 10% growth or 72.2c, -2% below consensus and -3.5% below our prior estimate. However, we see upside to guidance and the share price, and re-iterate our Buy rating.”
Should you invest $1,000 in Goodman right now?
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*Returns as of August 16th 2021
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. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.